Balance Sheet Preparation Due by midnight, Tuesday, October 4

Ivys Grass Company

Adjusted Trial Balance

December 31, 2021

Account Title		Debits		Credits
Cash		100,800
Investments		122,400
Accounts receivable		98,000
Allowance for uncollectible accounts				14,500
Inventories		288,000
Prepaid insurance		13,000
Land		172,800
Buildings		576,000
Equipment		144,000
Accumulated depreciation buildings				202,000
Accumulated depreciation equipment				43,000
Patents (net of amortization)		11,000
Accounts payable				101,000
Interest payable				29,000
Notes payable				187,000
Bonds payable				404,000
Discount on bonds payable		58,000
Common stock				144,000
Additional paid in capital in excess of par				288,000
Retained earnings (before closing)				173,000
Other accumulated comprehensive income (loss)		17,300
Treasury stock, at cost		21,600
Cash dividends		5,800
Sales				144,000
Cost of goods sold		100,800
		$ 1,729,500		$ 1,729,500

Required:

l. Prepare a classified balance sheet for Ivys Grass Company at December 31, 2021.

2. Calculate the current ratio and working capital (Don't forget to do this!)

This assignment should be presented professionally with appropriate $ signs and underlining. The accounts have been adjusted but not closed, so you will need to determine the appropriate balance for Retained Earnings.

Additional information:

1. The notes payable account consists of the following separate notes:

• A $30,000 note due in six months
• A $70,000 note due in eight years
• A $87,000 note due in six equal annual installment payments, with the next installment due April 15, 2022

2. The land account includes land which cost $60,000 that the company does not actively use and is considering listing for sale.

3. The cash account includes the following:

• $20,000 in a fund that is restricted for the repayment of bonds that mature in 2041.
• $31,200 of commercial paper that is due in 30 days.

• $1,500 in a petty cash fund.
• A commercial checking account at Piggy Bank with an overdraft balance of $4,700.

• The remaining cash balance is held in a commercial checking account at Ducky Bank.

4. The investment account includes the following items:

• A $43,000 investment in common stock of another corporation which management intends to hold for at least five years.

• $22,400 of Treasury bills that were originally issued with a maturity of 45 days.

• The remainder of these investments are intended to be sold in the coming year.

5. The corporation has 12,000 shares of $12 par value common stock issued. 72,000 shares have been authorized and 10,800 shares are outstanding.