Comprehensive Accounting Cycle Review 11-1

Blue Spruce Corp.s balance sheet at December 31, 2016, is presented below.

BLUE SPRUCE CORP. Balance Sheet December 31, 2016
Cash		$25,000			Accounts payable		$25,500
Accounts receivable		46,000			Common stock ($10 par)		85,000
Allowance for doubtful accounts		(1,900	)		Retained earnings		119,067
Supplies		4,800
Land		40,500
Buildings		137,000
Accumulated depreciationbuildings		(21,833	)
		$229,567					$229,567

During 2017, the following transactions occurred.

1.		On January 1, 2017, Blue issued 1,500 shares of $40 par, 8% preferred stock for $61,500.
2.		On January 1, 2017, Blue also issued 830 shares of the $10 par value common stock for $24,000.
3.		Blue performed services for $340,000 on account.
4.		On April 1, 2017, Blue collected fees of $35,000 in advance for services to be performed from April 1, 2017, to March 31, 2018.
5.		Blue collected $284,000 from customers on account.
6.		Blue bought $34,500 of supplies on account.
7.		Blue paid $31,000 on accounts payable.
8.		Blue reacquired 470 shares of its common stock on June 1, 2017, for $27 per share.
9.		Paid other operating expenses of $187,000.
10.		On December 31, 2017, Blue declared the annual preferred stock dividend and a $1.00 per share dividend on the outstanding common stock, all payable on January 15, 2018.
11.		An account receivable of $1,800 which originated in 2016 is written off as uncollectible.

Adjustment data:

1.		A count of supplies indicates that $5,600 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 $3,700 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 $6,000.
5.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

1) Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

BLUE SPRUCE CORP. Balance Sheet At December 31, 2017 Assets Current Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Click if you would like to Show Work for this question: Open Show Work