Question

A December 31, 2014, post-closing trial balance for Short Erin Company follows.

.:.
Additional information about Short Erin’s account balances:
1. Cash includes $12,000 in U.S. treasury bills purchased on December 21, 2014, that mature in January 2015. The account also includes $8,500 in stock purchased just before year-end that the company plans to sell in a few days.
2. The Accounts receivable balance consists of:
Trade receivables .................. $84,700
Allowance for doubtful trade accounts ......... (4,600)
Note receivable from Short Erin’s president due in 2015 .. 15,500
$95,600

Trade receivables includes $1,400 of customer accounts with credit balances.
3. Notes payable consists of two notes. One, in the amount of $50,000, is due on March 19,
2015. The other note matures on October 27, 2017.
4. The Taxes payable account contains deferred income taxes amounting to $61,250.
5. The installment note payable bears an annual interest rate of 10%. Semiannual payments of $6,756.43 are due each June 30 and December 31 and include principal and accrued interest. These payments will reduce the Installment note balance by $5,220 in 2015.
6. Of the 1,000,000 authorized shares of no par common stock, 300,000 shares are issued and outstanding.
7. The company recently announced plans to sell its operating facility in Katy, Texas, consisting of land (cost $82,000) and a building (cost $175,000; book value $110,000).
Production equipment has already been removed from the Katy plant and is being used in other company facilities.

Required:
Prepare a classified balance sheet for the Short Erin Company at December 31, 2014.



$1.99
Sales1
Views318
Comments0
  • CreatedSeptember 10, 2014
  • Files Included
Post your question
5000