Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me prepare a balance sheet for this problem. Thank you! The Little Airplane That Could Charters is a private airplane charter company that

Please help me prepare a balance sheet for this problem. Thank you!
image text in transcribed
image text in transcribed
The Little Airplane That Could Charters is a private airplane charter company that has been doing business since 2018. During 2020, bookings significantly increased and business really started to take off as a private airplane charter provider. The company has since purchased an additional alrcraft, hired an additional pilot, and most recently hired a flight attendant. As a result of the 2020 business boom, the company went public and started issued common stock. The Little Airplane That Could Charters now flies daily routes and has landed contracts with many high-flying individuals around the nation. Presented below is the Company's December 31, 2022, pre-closing trial balance. 1. Prepare a classified balance sheet as of December 31,2022 , in good form like you would present it to a client (i.e. use proper heading, dollar signs, underlining, no abbreviations, correct spelling). 1. The $249,575 balance in the cash account includes the following items: - A commercial checking account at First Canyon Bank - A certificate of deposit that matures in 30 days - Overdraft balance in a commercial checking account at Second Canyon Bank - Apetty cash fund - A money market fund with check writing privileges - A certificate of deposit that matures in 180 days - A separate cash fund restricted for the purchase of a new aircraft in 2 years 34,500 18,000 125 500 14,000 5,700 177,000 2. The investments account includes the following items: - Investments in bonds that mature February 14,2023 - Investments in common stock that company management intends to hold several years 20,000 - Purchased commercial paper in Freefly Inc. due in 27 days 3. The aircraft account includes a $152,500 retired airplane which management intends to sell in a few years and is not currently in service. 4. The notes payable account consists of the following separate notes: - A $20,000 note due in six months - A $80,000 note due in six years - A $2,203,200 note due in 360 equal monthly installments beginning January 31,2023 5. The common stock account represents 12,000 shares issued of $2 par value common stock. The company is authorized to sell 30,000 shares and 10,000 shares are currently outstanding

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

8th edition

978-1-119-3904, 1119392422, 111939242X, 1119390451, 978-1119392422

More Books

Students also viewed these Accounting questions