Problem: Prepare a balance sheet in proper order for the ABC Corporation as of December 31, 2004 based on the following information.
Arrange the following items in proper balance sheet presentation.
Accumulated depreciation $300,000
Retained earnings 96,000
Cash 10,000
Bonds payable 136,000
Accounts receivable 48,000
Plant and equipment-original cost 680,000
Accounts payable 35,000
Allowance for bad debts 6,000
Common stock $1 par, 100,000 shares outstanding 100,000
Inventory 66,000
Preferred stock, $50 par, 1,000 shares outstanding 50,000
Marketable securities 20,000
Investments 20,000
Notes payable 33,000
Capital paid in excess of par (common stock) 88,000
ABC Corporation
Balance Sheet
For the Year Ending December 31, 2004
Assets
Cash $10,000
Accounts receivable 48,000
Inventory 66,000
Marketable Securities 20,000
Equipment 680,000
Less Accumulated Depreciation 300,000 380,000
Total Assets $524,000
Liabilities
Accounts payable 35,000
Bonds payable 136,000
Investments 20,000
Notes Payable 33,000 $224,000
Stockholders Equity
Capital Stock $88,000
Retained earnings 96,000
Perferred Stock 50,000
Common Stock 100,000 $374,000
Total