E Business Course n Return to course Support Zachary Dubie Question 3 Partially correct Mark 10.00 out of 47.00 P Flag question $ 0 X $ 0 x 0 x 0 x 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. 0 x 0 X 0 X 0 x $1,600 Assets Current assets Cash Accounts receivable Less: Allowance for doubtful accounts : Short-term investments Inventory Prepaid expenses Total current assets Investments Land held for future business site Debt retirement fund Prepaid rent Total investments Property, plant, and equipment Equipment and furniture Less: Accumulated depreciation Net property, plant, and equipment Intangible assets Patent . 0 x X 4,000 $6,400 Deferred revenue 3,200 Cash dividends payable 13,600 Inventory 3,200 Land held for future business site 0 X 24,000 a X 0 X 14,400 0 X 56,000 0 X Accounts payable (trade) Debt retirement fund (long-term) Accounts receivable Income taxes payable Short-term investments, marketable securities (cost which approximates fair value) Bonds payable (long-term) Accumulated depreciation, equipment and furniture Common stock, par $1 (100,000 shares authorized) Cash Retained earnings, December 31, 2019 8,000 Equipment and furniture 40,800 Net income for 2020 28,000 0 X 4,800 Dividends (cash) declared (a debit) 2,400 0 X Other assets 0 x 0 x $ 56,000 Prepaid expenses (short-term) 800 16,000 Patent 3,200 13,600 Prepaid rent (long-term) 1,600 Investment in capital stock of Zinc Products 1,600 Corporation (long-term) 20,800 Premium on common stock 4,000 $ 0 x Allowance for doubtful accounts 0 x 0 x 0 X Prepaid rent Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable X Deferred revenue . X Dividends payable a X Total current liabilities Long-term liabilities Bonds payable Stockholders' equity Common stock Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0 x Required 0 X a. Compute the year-end balance of retained earnings. $ 0 X 0 x 0 x 0 X 0x 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. $ c. Compute working capital on December 31, 2020 $ 0 x
