Question
The following is a December 31, 2018, post-closing trial balance for Georgetown, Inc. . Account Title Debits Credits Cash $ 45,000 Investments 110,000 Accounts receivable
The following is a December 31, 2018, post-closing trial balance for Georgetown, Inc. .
Account Title |
| Debits |
| Credits | ||
Cash | $ | 45,000 |
|
|
|
|
Investments |
| 110,000 |
|
|
|
|
Accounts receivable |
| 60,000 |
|
|
|
|
Inventories |
| 200,000 |
|
|
|
|
Prepaid insurance (for the next 9 months) |
| 9,000 |
|
|
|
|
Land |
| 90,000 |
|
|
|
|
Buildings |
| 420,000 |
|
|
|
|
Accumulated depreciationbuildings |
|
|
| $ | 100,000 |
|
Equipment |
| 110,000 |
|
|
|
|
Accumulated depreciationequipment |
|
|
|
| 60,000 |
|
Patents (net of amortization) |
| 10,000 |
|
|
|
|
Accounts payable |
|
|
|
| 75,000 |
|
Notes payable |
|
|
|
| 130,000 |
|
Interest payable |
|
|
|
| 20,000 |
|
Bonds Payable |
|
|
|
| 240,000 |
|
Common stock |
|
|
|
| 300,000 |
|
Retained earnings |
|
|
|
| 129,000 |
|
Totals | $ | 1,054,000 |
| $ | 1,054,000 |
|
Additional information:
- The investment account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.
- The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.
- The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2021 and $23,000 restricted in a three-month Treasury bill.
- The notes payable account consists of the following:
- a $30,000 note due in six months.
- a $50,000 note due in six years.
- a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2019.
- The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
- The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
Required: Prepare a classified balance sheet for Georgetown as of December 31, 2018.
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