Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is a December 31, 2016, post-closing trial balance for Vader Corporation. (30 POINTS) Account Title Debits Credits Cash 90,000 Investments 110,000 Accounts receivable

The following is a December 31, 2016, post-closing trial balance for Vader Corporation. (30 POINTS) Account Title Debits Credits Cash 90,000 Investments 110,000 Accounts receivable 120,000 Inventories 400,000 Prepaid insurance 18,000 Land 130,000 Buildings 840,000 Accumulated depreciationbuildings 100,000 Equipment 220,000 Accumulated depreciationequipment 110,000 Patents (net of amortization) 20,000 Accounts payable 150,000 Notes payable 260,000 Interest payable 40,000 Bonds payable 480,000 Common stock 600,000 Retained earnings 258,000 Totals 1,054,000 1,054,000 Additional Information: 1. The investment account includes an investment in common stock of another corporation of $60,000 which management intends to hold for at least two years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $50,000 that the company has not used and is currently listed for sale. 3. The cash account includes $30,000 restricted in a fund to pay bonds payable that mature in 2019 and $46,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $60,000 note due in six months. b.a $100,000 note due in six years. c. a $100,000 note due in five annual installments of $20,000 each, with the next installment due February 15, 2017. 5. The $120,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $16,000. 6. The common stock account represents 200,000 shares of no par value common stock issued and outstanding. The corporation has 1,000,000 shares authorized. Required: Prepare a classified balance sheet for the Vader Corporation at December 31, 2016.

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

International Accounting

Authors: Radebaugh

4th Edition

0471136646, 9780471136644

More Books

Students also viewed these Accounting questions