Question
Correcting the Presentation of a Classified Balance Sheet The following draft of a balance sheet was prepared for Roslyn Corp., but includes a number of
Correcting the Presentation of a Classified Balance Sheet
The following draft of a balance sheet was prepared for Roslyn Corp., but includes a number of errors in classification, presentation, and computation.
Roslyn Corp.
Balance Sheet
December 31, 2020Cash$96,000Building452,000Equipment88,000Accounts receivable192,800Investments, short-term112,000Inventory260,000Prepaid rent4,000Investments, long-term112,000Franchise32,000Total assets$1,348,800LiabilitiesAccounts payable$160,000Note payable141,600Dividends payable8,000Deferred revenue2,400Accumulated depreciation64,000Bonds payable160,000Total536,000Stockholders' equityCommon stock380,000Retained earnings444,000Accumulated other comprehensive income(11,200)Total stockholders' equity812,800Total liabilities and stockholders' equity$1,348,800
Additional information
- Note payable includes interest due of $1,600. The note is due in two years and interest is due in 6 months.
- Net accounts receivable of $192,800 consists of accounts receivable of $205,600 minus an allowance for doubtful accounts of $12,800.
- Common stock includes $140,000 attributed to additional paid-in capital.
- Included in the cash balance is $16,000 of cash restricted for 9 months due to a debt covenant.
Required
corrected classified balance sheet for Roslyn Corp. on December 31, 2020.
- Do not use negative signs with any of your answers.
- List current liabilities and long-term liabilities in the order of the largest dollar amountto the smallest dollar amount.
Balance Sheet
As of December 31, 2020
Assets
Current assets
Cash
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Accounts receivable
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Accounts receivable, net
Answer
Short-term investments
Answer
Inventory
Answer
Prepaid rent
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Investments
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Property, plant, and equipment
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Equipment
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Intangible assets
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Liabilities and Stockholders' EquityCurrent liabilities
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Long-term liabilities
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Stockholders' equity
Common stock
Answer
Paid-in capital in excess of par
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
11,200
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
Answer
Accounts payable
Bonds payable
Building
Cash, restricted
Deferred revenue
Dividends payable
Franchise
Interest payable
Investments, long-term
Less: Accumulated depreciation
Less: Accumulated other comprehensive income
Less: Allowance for doubtful accounts
Net income
Net property, plant, and equipment
Note payable
Prepaid expenses
Retained earnings
Total assets
Total current assets
Total current liabilities
Total liabilities and stockholders' equity
Total long-term liabilities
Total stockholders' equity
Answer
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