Balance sheet- assets -liabilities and stockholders equity

Comprehensive Accounting Cycle Review 11-1 Ayayai Corp.'s balance sheet at December 31, 2016, is presented below. AYAYAI CORP Balance Sheet December 31, 2016 Cash Accounts receivable Allowance for doubtful accounts Supplies Land $26,000 Accounts payable $27,000 75,000 138,650 46,000 Common stock ($10 par) (1,900) Retained earnings 4,800 44,500 144,000 Accumulated depreclation-buildings (22,750) $240,650 $240,650 During 2017, the following transactions occurred. 1. 2. 3. 4. On January 1, 2017, Ayayai issued 1,300 shares of $49 par, 8% preferred stock for $66,300. On January 1, 2017, Ayayai also issued 840 shares of the $10 par value common stock for $20,500. Ayayai performed services for $322,000 on account. On April 1, 2017, Ayayai collected fees of $37,000 2017, to March 31, 2018. in advance for services to be performed from April 1, 5. Ayayai collected $285,000 from customers on account 6. Ayayai bought $36,000 of supplies on account. 7. Ayayal paid $30,000 on accounts payable. 8. 9. Ayayai reacquired 470 shares of its common stock on June 1, 2017, for $27 per share. Paid other operating expenses of $180,000. 10. On December r31, 2017, Ayayai declared the annual preferred stock dividend and a $1.00 per share dividend on the outstanding common stock, all payable on January 15, 2018. An account receivable of $1,900 which originated in 2016 is written off as uncollectible. 11. Adjustment data: 1. A count of supplies indicates that $5,900 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $3,400 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $7,500. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and mul by 30% to compute the amount.) 5. Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity Property, Plant and Equipment in order of Land, Buildings and Equipment.) AYAYAI CORP Balance Sheet Assets