Problem 2

Reality Company prepared the following Balance sheet:
Reality Company Balance Sheet for Year Ended December 31, 2021 Working Capital $ 22,800 Noncurrent Liabilities $ 62,000 Other Assets 152,000 Shareholder's Equity 112,800 Total $ 174,800 Total $ 174,800

An analysis prepared by your of these accounts reveals the following information:

1. Working Capital consists of:
Land	$14,500
Accounts due from customers	16,000
Accounts due to supplies	(22,700)
Inventories, including office supplies of $3,500	35,000
Income taxes owed	(15,700)
Wages owed	(3,300)
Note owed to the bank (due December 31, 2024)	(18,000)
Securities held as a short-term investment	17,000
Total 2. Other Assets include: Cash Prepaid Insurance Buildings and equipment Discount on Bonds Payable Investment in available for sale securities Treasury Stock (at Cost) Total 3. Noncurrent liabilities consist of: Bonds payable (due 2028) Allowance for doubtful accounts Additional paid-in capital on preferred stock Common stock, $5 par Total 4. Shareholder's equity includes: Accumulated depreciation: Buildings and equipment Preferred Stock, $100 par Additional paid-in capital on common stock Retained earnings Accrued pension cost Unrealized decrease in value of available for sale securities Total	$22,800 $ 12,500 2,800 100,000 3,000 28,600 5,100 $ $152,000 $ 33,000 1,600 2,400 25,000 $ 62,000 42,500 12,000 13,100 39,300 7,200 (1,300) $ 112,800

Instructions: Based on your analysis, prepare a properly classified balance with parenthetic notes applicable to Reality Corporation on December 31, 2021. Dollars in are thousands

That's the instructions. That's all I was given.

Based on the information, I think, have to put it in the correct income statement and retained earnings statement.

Retained earnings Accrued pension cost Unrealized decrease in value of available for sale securities Total 39,300 7,200 (1.300) 112.800 ACC-2100: Exam#2 - Page 5 Instructions: Based on your analysis prepare a properly classified balance with parenthetic notes as applicable for Reality Corporation at December 31, 2021. Dollars in are thousands rds English (United States) w Retained earnings Accrued pension cost Unrealized decrease in value of available for sale securities Total 39,300 7,200 (1.300) 112.800 ACC-2100: Exam#2 - Page 5 Instructions: Based on your analysis prepare a properly classified balance with parenthetic notes as applicable for Reality Corporation at December 31, 2021. Dollars in are thousands rds English (United States) w