Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The adjusted trial balance of Carla Company and other related information for the year 2017 are presented as follows. CARLA COMPANY ADJUSTED TRIAL BALANCE DECEMBER

The adjusted trial balance of Carla Company and other related information for the year 2017 are presented as follows.

CARLA COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2017
Debit Credit
Cash $42,500
Accounts Receivable 165,000
Allowance for Doubtful Accounts $8,910
Prepaid Insurance 6,110
Inventory 210,000
Equity Investments (long-term) 340,500
Land 86,500
Construction in Progress (building) 125,500
Patents 36,000
Equipment 401,500
Accumulated Depreciation-Equipment 240,210
Discount on Bonds Payable 20,000
Accounts Payable 149,500
Accrued Liabilities 50,700
Notes Payable 95,500
Bonds Payable 201,500
Common Stock 501,500
Paid-in Capital in Excess of Par-Common Stock 45,000
Retained Earnings 140,790
$1,433,610 $1,433,610

Additional information:

1. The LIFO method of inventory value is used.
2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same.
3. The amount of the Construction in Progress account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $86,500, as shown in the trial balance.
4. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis.
5. Of the discount on bonds payable, $2,000 will be amortized in 2018.
6. The notes payable represent bank loans that are secured by long-term investments carried at $121,500. These bank loans are due in 2018.
7. The bonds payable bear interest at7% payable every December 31, and are due January 1, 2028.
8. 600,000 shares of common stock of a par value of $1 were authorized, of which501,500 shares were issued and outstanding.

Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed.(List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

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

Step: 3

blur-text-image

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

Accounting Multicolumn Journal

Authors: Claudia Gilbertson

10th Edition

128552845X, 9781285528458

More Books

Students also viewed these Accounting questions

Question

What do you like to do for fun/to relax?

Answered: 1 week ago

Question

need upper and lower tosor: Conbol Litit iucly

Answered: 1 week ago