Computing Retained Earnings and Preparing a Classified Balance Sheet The following data, in no particular order, are from the accounts of Brown Corp as of December 31, 2020, its annual year end All amounts are accurate, all accounts have normal balances, and total debits equal total credits Accounts payable (trade) $8,000 Deferred revenue $2,000 Debt retirement fund (long term) 4,000 Cash dividends payable 5,000 Accounts receivable 17,000 Inventory 30,000 Income taxes payable 4,000 Land held for future business site 18,000 Short term investments, marketable securities (cost which approximates fair value) 10,000 Equipment and furniture 70,000 Bonds payable (long term) 51,000 Net income for 2020 35,000 Accumulated depreciation, equipment and furniture 6,000 Dividends (cash) declared (a debit) 3,000 Common stock, par $1 (100,000 shares authorized) 70,000 Prepaid expenses (short term) 1,000 Cash 20,000 Patent 4,000 Retained earnings, December 31, 2019 17,000 Prepaid rent (long term) 2,000 Allowance for doubtful accounts 2,000 Investment in capital stock of Zinc Products Corporation (long term) 26,000 Premium on common stock 5,000 Required a Compute the year end balance of retained earnings $Answer b Prepare a classified balance sheet as of December 31, 2020 Do not use negative signs with any of your answers List investments and current liabilities in the order of the largest dollar amount to the smallest dollar amount Balance Sheet As of December 31, 2020 Assets Current assets Cash Answer Accounts receivable Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Inventory Answer Prepaid expenses Answer Total current assets Answer Investments AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Total investments Answer Property, plant, and equipment AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Net property, plant, and equipment Answer Intangible assets AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Other assets AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Total assets Answer Liabilities and Stockholders' Equity Current liabilities AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Total current liabilities Answer Long term liabilities AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Stockholders' equity AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Paid in capital in excess of parcommon stock Answer AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess Accumulated depreciationLess Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort term investments Answer Total stockholders' equity Answer Total liabilities and stockholders' equity Answer c Compute working capital on December 31, 2020 $Answer Please answer all parts of the question Current assets Cash Accounts receivable Accounts payable Bonds payable Common stock Total Debt retirement fund Inve Deferred revenue Dividends payable Equipment and furniture Income taxes payable Investment in Zinc Products Corporation Land held for future business site Prop Less Accumulated depreciation Less Allowance for doubtful accounts Net income Patent Prepaid rent Inta Retained earnings Short term investments Other assets oo oo

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Computing Retained Earnings and Preparing a Classified Balance Sheet The following data, in no particular order, are from the accounts of Brown Corp. as of

Computing Retained Earnings and Preparing a Classified Balance Sheet

The following data, in no particular order, are from the accounts of Brown Corp. as of December 31, 2020, its annual year-end. All amounts are accurate, all accounts have normal balances, and total debits equal total credits.

Accounts payable (trade)	$8,000	Deferred revenue	$2,000
Debt retirement fund (long-term)	4,000	Cash dividends payable	5,000
Accounts receivable	17,000	Inventory	30,000
Income taxes payable	4,000	Land held for future business site	18,000
Short-term investments, marketable securities (cost which approximates fair value)	10,000	Equipment and furniture	70,000
Bonds payable (long-term)	51,000	Net income for 2020	35,000
Accumulated depreciation, equipment and furniture	6,000	Dividends (cash) declared (a debit)	3,000
Common stock, par $1 (100,000 shares authorized)	70,000	Prepaid expenses (short-term)	1,000
Cash	20,000	Patent	4,000
Retained earnings, December 31, 2019	17,000	Prepaid rent (long-term)	2,000
Allowance for doubtful accounts	2,000	Investment in capital stock of Zinc Products Corporation (long-term)	26,000
		Premium on common stock	5,000

Required

a. Compute the year-end balance of retained earnings. $Answer

b. Prepare a classified balance sheet as of December 31, 2020.

Do not use negative signs with any of your answers.
List investments and current liabilities in the order of the largest dollar amount to the smallest dollar amount.

Balance Sheet As of December 31, 2020
Assets
Current assets
Cash		Answer
Accounts receivable	Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments	Answer	Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Inventory		Answer
Prepaid expenses		Answer
Total current assets		Answer
Investments
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Total investments		Answer
Property, plant, and equipment
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments	Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments	Answer
Net property, plant, and equipment		Answer
Intangible assets
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Other assets
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Total assets		Answer
Liabilities and Stockholders' Equity
Current liabilities
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Total current liabilities		Answer
Long-term liabilities
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Stockholders' equity
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Paid-in capital in excess of parcommon stock		Answer
AnswerAccounts payableBonds payableCommon stockDebt retirement fundDeferred revenueDividends payableEquipment and furnitureIncome taxes payableInvestment in Zinc Products CorporationLand held for future business siteLess: Accumulated depreciationLess: Allowance for doubtful accountsNet incomePatentPrepaid rentRetained earningsShort-term investments		Answer
Total stockholders' equity		Answer
Total liabilities and stockholders' equity		Answer

c. Compute working capital on December 31, 2020.

$Answer

Please answer all parts of the question.

Current assets Cash Accounts receivable . . . . . Accounts payable Bonds payable Common stock Total Debt retirement fund Inve Deferred revenue Dividends payable Equipment and furniture Income taxes payable Investment in Zinc Products Corporation Land held for future business site Prop Less: Accumulated depreciation Less: Allowance for doubtful accounts Net income Patent Prepaid rent Inta Retained earnings Short-term investments Other assets oo oo