9 Problem 3-5 (Algo) Balance sheet preparation (LO3-2, 3-3] The following is the ending balances of accounts at June 30, 2021, for Excell Company. 1 points Credits Debits $ 123,000 105,000 320,000 72,000 115,000 360,000 $ 180,000 Account Title Cash Short-term investments Accounts receivable (net) Prepaid expenses (for the next 12 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Accrued liabilities Notes payable Mortgage payable Common stock Retained earnings Totals 285,000 140,000 193,000 65,000 140,000 330,000 300,000 32,000 $1,380,000 $1,380,000 Additional information: 1. The short-term investments account includes $38,000 in U.S. treasury bills purchased in May. The bills mature in July, 2021. 2. The accounts receivable account consists of the following: a. Amounts owed by customers b. Allowance for uncollectible accounts-trade customers c.Nontrade notes receivable (due in three years) d. Interest receivable on notes (due in four months) Total $261,000 (28,000) 85,000 2,000 $320,000 3. The notes payable account consists of two notes of $70,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022. 4. The mortgage payable is a loan payable to the bank in semiannual installments of $6,600 each plus interest. The next payment is due on October 31, 2021. Interest has been properly accrued and is included in accrued expenses. 5. Eight hundred thousand shares of no par common stock are authorized, of which 600,000 shares have been issued and are outstanding. 6. The land account includes $70,000 representing the cost of the land on which the company's office building resides. The remaining $45,000 is the cost of land that the company is holding for investment purposes. Required: Prepare a classified balance sheet for the Excell Company at June 30, 2021. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. EXCELL COMPANY Balance Sheet At June 30, 2021 Assets Current assets: $ 206,000 X 581,000 Cash and cash equivalents Accounts receivable (net) Allowance for uncollectible accounts Short-term investments x 28,000 143,000 X 2,000 Interest receivable Prepaid expenses Total current assets 72,000 1,032,000 Investments: Land held for sale $ 45,000 Notes receivable 85,000 130,000 Property, plant, and equipment: Land Buildings Equipment 70,000 360,000 285,000 715,000 (180,000) (140,000) Less: Accumulated depreciation-buildings Less: Accumulated depreciation-equipment Net property, plant, and equipment 395,000 $ 1,557,000 Total assets $ Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable (current) Mortgage payable X 193,000 65,000 70,000 (6,600) X Total current liabilities 321,400 Long-term liabilities: Notes payable (long-term) Mortgage payable $ 70,000 330,000 X Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 193,000 65,000 Accrued liabilities Notes payable (current) Mortgage payable 70,000 (6,600) Total current liabilities 321,400 Long-term liabilities: Notes payable (long-term) Mortgage payable $ 70,000 330,000 X Total long-term liabilities 400,000 721,400 Total liabilities Shareholders' equity: Common stock 300,000 32,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 332,000 $ 1,053,400