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Use the info on the table (first image) and in additional information (second image) to prepare a classified balance sheet as per 31 December 2020
Use the info on the table (first image) and in additional information (second image) to prepare a classified balance sheet as per 31 December 2020
Lewiston Company reports the following trial balance on December 31, 2020: Account title Debit Credit Cash $30,000 Investments 55,500 Account Receivable $12,000 Allowance for uncollectable $3,000 Prepaid rent $8,000 Inventories $10,000 Land $40,000 Patent $29,500 Account Payable $2,000 Unearned Revenue $6,000 Bond Payable $15,000 Common Stock $122,000 Retained Earning $37,000 Total $185,000 $185,000 Additional Information: 1. The investment includes $4,000 invested in treasury bills, which will mature in July 1, 2021. The remaining investments carries a maturity period more than one year, ie., will mature in 2022. 2. The land account consists of $30,000 for the cost of the land where the office buildings are located. The remaining balance represent the cost of the land held for sale. 3. $9,500 of cash balance will be used as an investment in marketable securities that is going to take place next year. The remaining represent commercial papers due in January 2022. 4. The company entered into a contract with the real estate company. Accordingly, the company has paid advance rent equal to two years rent. Prepaid rent reported in the balance sheet is related to advance rent paid for 2021 and 2022. 5. Out of $15,000 balance of Bond payable, $7,000 will be payable in 2025.|| Required: Prepare classified balance sheet as per 31st December 2020Step by Step Solution
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