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The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $17,000; accounts receivable, $12,000; inventory, $26,000; equipment (net), $81,000; accounts payable, $15,000; salaries payable, $5,500; interest payable, $1,500; notes payable (due in 18 months), $31,000; common stock, $52,000. Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $120,000.
The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $17,000; accounts receivable, $12,000; inventory, $26,000; equipment (net), $81,000; accounts payable, $15,000; salaries payable, $5,500; interest payable, $1,500; notes payable (due in 18 months), $31,000; common stock, $52,000. Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $120,000.
Answer:Explanation:Total assets = Total liabilities + Equity + Retained earningsTotal assets = 17,000 + 12,000 + 26,000 + 81,000= $136,000Equity is $52,000Total liabilities and equity = 15,000 + 5500 + 1500 + 31,000 + 52,000= $105,000Retained earnings = Total assets - total liabilities and equity= $31,000Net investment of 81,000 is original cost of $120,000 less accumulated depreciation of $39,000.Classified balance sheet is prepared in the attached spreadsheet:...
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