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-   -   Accounting (help with a classified balance sheet) (https://www.askmehelpdesk.com/showthread.php?t=2244)

  • Jul 17, 2004, 10:26 AM
    cthulhu
    Accounting (help with a classified balance sheet)
    Hello people I'm new here, and I'm studying for an accounting exam, and I'm studying up and practising but there is one exercise that I can't make heads or tail of it and I hope you guys can help.

    This is a partial adjusted trial balance and it shows the necessary accounts to prepare a classified balance sheet.

    Audio Concepts
    Adjusted Trial Balance (partial)
    December 31, 2002

    Accounts dr cr
    Cash 20,000
    Accounts receivable 11,000
    Supplies 4,000
    Prepaid insurance 6,000
    Audio equipment 205,000
    Accumulated depreciation -audio equip 29,000
    Accounts payable 19,000
    Notes payable 70,000
    Salaries payable 3,000
    J franco capital 112,000
    J franco drawings 14,000


    I need to prepare a clasified balance sheet assuming the company had a net income of 27,000 for the year and the notes payable due on 5 years


    Thanks and any and all help is appreciated
  • Aug 2, 2005, 09:34 AM
    lnguyen
    Balance Sheet Classified
    Balance Sheet breaks down three categories: asset= Liability+SE

    Asset

    Current Asset (classify the ones that easily convert into cash fast first)
    Cash 20000
    AR 11000
    Supplies 4000
    Prepaid Insurance 6000
    Total Current Assets 41000

    Property,plant, and Eqipment
    Audio Equipment 205000
    Less: Audio Accu. Depre (29000)
    Total Property, Plant, and Equipment 176000

    Total Assets 217000

    Liability and Stockholder Equity

    Current Liability (Due less than a year or fiscal year, which ever comes first)
    Account Payable 19000
    Salaries payable 3000
    Total Current Liability 22000

    Long-Term Liability (More than a year)
    Notes payable 70000

    Total Liability 92000

    Stockholder Equity
    J Franco Capital 112000
    Less: J Franco drawings (14000)
    Retained Earnings 27000
    Total Stockholder Equity 125000

    Total liability and Stockholder's Equity 217000


    Now, notice that Total Assets ($217000) = total liability and SE ($217000)

    Hope this help... gl. :)

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