Question

The following is a December 31, 2018, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits Credits Cash 64,000 Accounts receivable 48,000 Inventories 54,000 Prepaid insurance 24,000 Equipment 120,000 Accumulated depreciation—equipment 43,000 Patent, net 49,000 Accounts payable 16,500 Interest payable 6,500 Note payable (due in 10, equal annual installments) 150,000 Common stock 79,000 Retained earnings 64,000 Totals 359,000 359,000 Prepare a classified balance sheet for Culver City Lighting, Inc. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Prepare classified balance sheet

Assets
Current assets
Cash	64000
Account receivable	48000
Inventories	54000
prepaid insurance	24000
Total Current assets		190000
Non Current assets
Equipment	120000
Less: Accumulated depreciation-Depreciation	-43000	77000
Other assets
Patent	49000
		49000
Total Assets		316000
Liabilities and stockholder's equity
Current liabilities
Account payable	16500
Interest payable	6500
Notes payable	15000
Total Current liabilities		38000
Long term liabilities
Notes payable		135000
Total liabilities		173000
Stockholder's equity
Common Stock	79000
Retained earnings	64000
Total Stockholder's equity		143000
Total liabilities and stockholder's equity		316000