Question
Example A Post-closing trial balance on Dec 31st 2020: Accounts Debits Credits Cash 40000 Accounts Receivable 35,000 Allowance for Doubtful Accounts 7000 Inventory 80000 Investments
Example A
Post-closing trial balance on Dec 31st 2020:
Accounts | Debits | Credits |
Cash | 40000 |
|
Accounts Receivable | 35,000 |
|
Allowance for Doubtful Accounts |
| 7000 |
Inventory | 80000 |
|
Investments | 40000 |
|
Notes Receivable | 50000 |
|
PPE | 390000 |
|
Accumulated Depreciation |
| 50000 |
Patents | 25000 |
|
Prepaid rent | 40000 |
|
|
|
|
Accounts payable |
| 50000 |
Notes payable |
| 180000 |
Salaries payable |
| 79000 |
Taxes payable |
| 39000 |
Interest payable |
| 25000 |
Common Stock |
| 150000 |
Retained earnings |
| 100000 |
AOCI |
| 20000 |
| 700000 | 700000 |
$2,000 cash has been set aside to pay off a note payable that matures in 2022. Investments include: A $5,000 municipal bond issued on Nov 1st 2020 with a maturity date 90 days from date of issue. $20,000 in stocks that the firm does not intend to sell within the next 12 months The remainder consists of stocks and bonds intended for sale within the next 12 months Accounts receivable includes a $10,000 long term note from a customer due Dec 1st- 2020. This note has been left out of the reported Note receivables. Notes payable include: 80,000 is a note due March 31st 2025 100,000 is a note with 5 payments of 20,000. First payment is due June 1st 2021 Prepaid rent represents two years worth of rent expense prepaid in advance Common stock consists of: 10,000 shares outstanding of stock with PAR value of $1, issued at $15, 50,000 shares authorized Using the following information, fill in the blanks on the the Balance sheet dated Dec 31st 2020:
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