[inquiringmind10]

I have a problem I have been working on all night and have not gotten it right yet. Please help. I need to prepare a classied balance sheet assuming the 13,00 of the note payable will be paid in 2011. The following items were taken from the financial statement.

Building $105,800
A/R 12,600
Prepaid insurance 4,680
Cash 11,840
Equipment 82,400
Land 61,200
Insurance expense 780
Depreciation expense 5,300
Interest expense 2,600
Common stock 62,000
Retained earnings (January 1, 2010) 40,000
Accumulated depreciation-building 45,600
Accounts payable 9,500
Note payable 93,600
Accumulated depreciation-equipment 18,720
Interest payable 3,600
Bowling revenues 14,180

The following is what I have come up with. Please revise where necessary. This is my first week in this class and I am trying striving to understand the methods because I need to test later online later. Thanks in advance

Assets
Current assets
Cash $11,840
Accounts receivable 12,600
Total current assets $24,440

Property, plant, and equipment
Land $61,200
Building 105,800
Accumulated depreciation 45,600 $60,200

Equipment 82,400
Accumulated depreciation 18,720 63,680 185,080
Total assets $209,520

Liabilities and Stockholders' Equity
Current Liabilities
Note payable $93,600
Accounts payable $9,500
Interest payable $3,600
Total current liabilities $106,700
Long-term liabilities
Note payable $13,600
Total long-term liabilities $13,600
Total liabilities $120,300
Stockholders' equity
Common stock
Retained earnings
Total stockholders' equity 89220
Total liabilities and stockholders' equity $209,520

[morgaine300]

You left out the prepaid insurance.

You did the opposite on the current portion of the long-term debt as what I said. You've got the current portion in the long-term section. And then you've got the long-term note in the current section (and didn't subtract the 13,600).

The note is 93,600. Of that, 13,600 is current, leaving the rest as long-term. Does it not seem illogical that you would pay 93,600 within the next year and 13,600 in over a year? How many loans do you pay that much of currently and so little of later into the long-term? (There really is some logic in accounting, really there is. No different than you getting a car loan.)

As for common stock, it's GIVEN. When you first asked about that, I didn't know what info had been given. Now that I see the info, I'm not sure why you're trying to calculate it.

Retained earnings is what you need to calculate:
Beginning Balance
+ Net Income
- Dividends Declared
= Ending Balance

You have to know that net income goes into retained earnings and dividends come out of it. It's literally the earnings (net income) that is retained in the company, which would be less any dividends paid. You retain what you don't pay. As long as it's not paid, it also keeps accumulating.

[inquiringmind10]

You left out the prepaid insurance.

You did the opposite on the current portion of the long-term debt as what I said. You've got the current portion in the long-term section. And then you've got the long-term note in the current section (and didn't subtract the 13,600).

The note is 93,600. Of that, 13,600 is current, leaving the rest as long-term. Does it not seem illogical that you would pay 93,600 within the next year and 13,600 in over a year? How many loans do you pay that much of currently and so little of later into the long-term? (There really is some logic in accounting, really there is. No different than you getting a car loan.)

As for common stock, it's GIVEN. When you first asked about that, I didn't know what info had been given. Now that I see the info, I'm not sure why you're trying to calculate it.

Retained earnings is what you need to calculate:
Beginning Balance
+ Net Income
- Dividends Declared
= Ending Balance

You have to know that net income goes into retained earnings and dividends come out of it. It's literally the earnings (net income) that is retained in the company, which would be less any dividends paid. You retain what you don't pay. As long as it's not paid, it also keeps accumulating.

Thanks Morgaine300, better late than never. I am cleaning up my act. I have been up for more that 24hrs. Stuff is getting really messed up. I even messed up on the quiz, but I wll re-submit this balance sheet because I cannot have 2 bad grades this week. Thanks and Good Blessings

[morgaine300]

go get some sleep first! :eek: