Problem # 3

The adjusted trial balance of Christmas Company and other related information for the year 2021:

CHRISTMAS COMPANY

ADJUSTED TRIAL BALANCE

DECEMBER 31, 2021

Debits Credits

Cash $ 8,700

Accounts Receivable 85,000

Allowance for Doubtful Accounts $ 5,900

Prepaid Insurance 41,000

Inventory 163,500

Bond Sinking Fund 339,000

Land 315,000

Factory Building 309,000

Accumulated Depreciation Factory Building 294,000

Patents (net) 36,000

Equipment 208,500

Accumulated Depreciation - Equipment 40,000

Unamortized Discount on Bonds Payable 20,000

Accounts Payable 49,000

Accrued Expenses 49,200

Mortgage Payable 200,000

Bonds Payable 250,000

Common Stock 350,000

Paid-in Capital in Excess of ParCommon Stock 148,000

Retained Earnings 139,600

$1,525,700 $1,525,700

Additional information for disclosure proposes, (this is an adjusted trial balance; ALL adjusting and closing entries have been completed). Some of the following information would be disclosed in ( ) on the balance sheet or used in preparing the statement. See examples in the textbook.

Additional information:

1. The LIFO method of inventory value is used.

2. The cost and fair value of the bond sinking fund is the same.

3. The mortgage payable is secured by the Factory Building. The portion that will be paid next year is $41,000.

4. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2035.

5. 600,000 shares of common stock of a par value of $1 were authorized, of which 300,000 shares were issued and outstanding.

Instructions:

Using Excel, create a classified balance sheet as of December 31, 2021. You must format the balance sheet so it prints out on a single sheet of paper (81/2 x 11, Portrait).