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) $28,000 Deferred revenue $7,000 Debt retirement fund (long term) 14,000 Cash dividends payable 17,500 Accounts receivable 59,500 Inventory 105,000 Income taxes payable 14,000 Land held for future business site 63,000 Short term investments, marketable securities (cost which approximates fair value) 35,000 Equipment and furniture 245,000 Bonds payable (long term) 178,500 Net income for 2020 122,500 Accumulated depreciation, equipment and furniture 21,000 Dividends (cash) declared (a debit) 10,500 Common stock, par $1 (300,000 shares authorized) 245,000 Prepaid expenses (short term) 3,500 Cash 70,000 Patent 14,000 Retained earnings, December 31, 2019 59,500 Prepaid rent (long term) 7,000 Allowance for doubtful accounts 7,000 Investment in capital stock of Zinc Products Corporation (long term) 91,000 Premium on common stock 17,500 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 Possible entries 1 Accounts payable 2 Bonds payable 3 Common stock 4 Debt retirement fund 5 Deferred revenue 6 Dividends payable 7 Equipment and furniture 8 Income taxes payable 9 Investment in Zinc Products Corporation 10 Land held for future business site 12 Less Accumulated depreciation 13 Less Allowance for doubtful accounts 14 Net income 15 Patent 16 Prepaid rent 17 Retained earnings 18 Short term investments c Compute working capital on December 31, 2020 Balance Sheet As of December 31, 2020 Assets Current assets Cash $ 0 Accounts receivable $ o o o o o o Inventory Prepaid expenses Total current assets 0 Investments o ooo Total investments Property, plant, and equipment 0 0 0 Net property, plant, and equipment Intangible assets 0 Other assets 010 Total assets $ Liabilities and Stockholders' Equity Current liabilities $ o oo oo Total current liabilities Long term liabilities 0 Stockholders' equity 0 Paid in capital in excess of par common stock 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Required a Compute the year end balance of retained earnings $ 0 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 $ 0 Accounts receivable $ 0 0 0 0 0 Inventory Prepaid expenses Total current assets 0 0 Investments 0 0 0 Total investments 0 Property, plant, and equipment 0 0 0 Net property, plant, and equipment Intangible assets 0 Other assets 0 $ 0 Total assets Liabilities and Stockholders' Equity Current liabilities $ 0 0 0 c Compute working capital on December 31, 2020 $ 0 Check

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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)	$28,000	Deferred revenue	$7,000
Debt retirement fund (long-term)	14,000	Cash dividends payable	17,500
Accounts receivable	59,500	Inventory	105,000
Income taxes payable	14,000	Land held for future business site	63,000
Short-term investments, marketable securities (cost which approximates fair value)	35,000	Equipment and furniture	245,000
Bonds payable (long-term)	178,500	Net income for 2020	122,500
Accumulated depreciation, equipment and furniture	21,000	Dividends (cash) declared (a debit)	10,500
Common stock, par $1 (300,000 shares authorized)	245,000	Prepaid expenses (short-term)	3,500
Cash	70,000	Patent	14,000
Retained earnings, December 31, 2019	59,500	Prepaid rent (long-term)	7,000
Allowance for doubtful accounts	7,000	Investment in capital stock of Zinc Products Corporation (long-term)	91,000
		Premium on common stock	17,500

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

Possible entries:

1. Accounts payable 2. Bonds payable 3. Common stock 4.Debt retirement fund 5.Deferred revenue 6.Dividends payable 7.Equipment and furniture 8.Income taxes payable 9.Investment in Zinc Products Corporation 10. Land held for future business site 12. Less: Accumulated depreciation 13. Less: Allowance for doubtful accounts 14. Net income 15. Patent 16. Prepaid rent 17. Retained earnings 18. Short-term investments

c. Compute working capital on December 31, 2020.

Balance Sheet As of December 31, 2020 Assets Current assets Cash $ 0 Accounts receivable $ o o o o o o Inventory Prepaid expenses Total current assets 0 Investments o ooo Total investments Property, plant, and equipment 0 0 0 Net property, plant, and equipment Intangible assets 0 Other assets 010- Total assets $ Liabilities and Stockholders' Equity Current liabilities $ o oo oo Total current liabilities Long-term liabilities 0 Stockholders' equity 0 Paid-in capital in excess of par-common stock - 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Required a. Compute the year-end balance of retained earnings. $ 0 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 $ 0 Accounts receivable $ 0 0 0 0 0 Inventory Prepaid expenses Total current assets 0 0 Investments 0 0 0 Total investments 0 Property, plant, and equipment 0 0 0 Net property, plant, and equipment Intangible assets 0 Other assets 0 $ 0 Total assets Liabilities and Stockholders' Equity Current liabilities $ 0 0 0 c. Compute working capital on December 31, 2020. $ 0 Check