The following is a December 31, 2016, post-closing trial balance for the Jackson Corporation.
Account TitleDebitsCredits Cash51,000 Accounts receivable45,000 Inventories86,000 Prepaid rent27,000 Marketable securities (short term)21,000 Machinery200,000 Accumulated depreciation—machinery 22,000 Patent (net of amortization)90,000 Accounts payable 13,500 Wages payable 9,500 Taxes payable 43,000 Bonds payable (due in 10 years) 250,000 Common stock 140,000 Retained earnings 42,000 Totals520,000 520,000
Prepare a classified balance sheet for Jackson Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
Cone Corporation is in the process of preparing its December 31, 2016, balance sheet. There are some questions as to the proper classification of the following items:
$67,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2020. b.
Prepaid rent of $41,000, covering the period January 1, 2017, through December 31, 2018. c.
Note payable of $234,000. The note is payable in annual installments of $37,000 each, with the first installment payable on March 1, 2017. d.
Accrued interest payable of $29,000 related to the note payable. e.
Investment in marketable securities of other corporations, $114,000. Cone intends to sell one-half of the securities in 2017.
Prepare a partial classified balance sheet to show how each of the above items should be reported.
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2016 balance sheet reported the following: cash, $1,360,000; prepaid expenses, $420,000; noncurrent assets, $3,000,000; and shareholders’ equity, $3,100,000. The current ratio at the end of the year was 2.8 and the debt to equity ratio was 2.0.
Required:Determine the following 2016 amounts and ratios: (Round your “The acid-test ratio” answer to 1 decimal place.)
The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation. Account TitleDebitsCredits Cash 103,000 Short-term investments 218,000 Accounts receivable 159,000 Long-term investments 53,000 Inventories 233,000 Loans to employees 58,000 Prepaid expenses (for 2017) 34,000 Land 298,000 Building 1,730,000 Machinery and equipment 655,000 Patent 170,000 Franchise 58,000 Note receivable 340,000 Interest receivable 30,000 Accumulated depreciation—building 638,000 Accumulated depreciation—equipment 228,000 Accounts payable 207,000 Dividends payable (payable on 1/16/17) 28,000 Interest payable 34,000 Taxes payable 58,000 Deferred revenue 78,000 Notes payable 336,000 Allowance for uncollectible accounts 26,000 Common stock 2,072,000 Retained earnings 434,000 Totals 4,139,000 4,139,000
The common stock represents 1.5 million shares of no par stock authorized, 680,000 shares issued and outstanding.2. The loans to employees are due on June 30, 2017.3.
The note receivable is due in installments of $68,000, payable on each September 30. Interest is payable annually.4.
Short-term investments consist of marketable equity securities that the company plans to sell in 2017 and $68,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.5.
Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in 2017, the remainder in 2018.6.
Notes payable consists of two notes, one for $118,000 due on January 15, 2018, and another for $218,000 due on June 30, 2019. Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)