Preparing a balance sheet (LO 4-1) A December 31, 20X1, postclosing trial balance for Short Erin Company follows. Account Title Cash Short-term investments Accounts receivable Inventory Prepaid expenses Debits $ 61,500 47,000 95,600 175,000 Credits 13,500 Land Buildings 241,800 584,900 Accumulated depreciation-buildings Production equipment $ 132,500 477,700 Accumulated depreciation-production equipment 239,600 Patents Leasehold 50,000 7,000 Accounts payable 38,400 Accrued salaries 3,400 Taxes payable Notes payable Installment note payable Bonds payable Common stock Retained earnings Totals 65,800 200,000 84,200 250,000 300,000 440,100 $ 1,754,000 $ 1,754,000 Additional information about Short Erin's account balances: 1. Cash includes $12,000 in U.S. treasury bills purchased on December 21, 20X1, that mature in January 20X2. The account also includes $8,500 in stock purchased just before year-end that the company plans to sell in a few days. 2. The Accounts receivable balance consists of: Trade receivables Allowance for doubtful trade accounts Note receivable from Short Erin's president due in 20X2 Trade receivables includes $1,400 of customer accounts with credit balances. $ 84,700 (4,600) 15,500 $ 95,600 3. Notes payable consists of two notes. One, in the amount of $50,000, is due on March 19, 20X2. The other note matures on October 27, 20X4. 4. The Taxes payable account contains deferred income taxes amounting to $61,250. 5. The installment note payable bears an annual interest rate of 10%. Semiannual payments of $6,756.43 are due each June 30 and December 31 and include principal and accrued interest. These payments will reduce the Installment note balance by $5,220 in 20X2. 6. Of the 1,000,000 authorized shares of no par common stock, 300,000 shares are issued and outstanding. 7. The company recently announced plans to sell its operating facility in Katy, Texas, consisting of land (cost $82,000) and a building (cost $175,000; book value $110,000). Production equipment has already been removed from the Katy plant and is being used in other company facilities