John Smith, manager of Smith Foods, needs assistance in preparing the company's balance sheet at December...

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John Smith, manager of Smith Foods, needs assistance in preparing the company's balance sheet at December 31, 2019. Financial information available is as follows: Account Title Mortgage payable Accounts payable Account Balance $310,000(1) 30,000 Accounts receivable 25,000 Cash 10,000 Accrued expenses 15,000 Income taxes payable 10,000 Inventory--food 11,000 Inventory--supplies 2,000 Prepaid insurance 4,000(2) Common stock 275,000 Investments Land Prepaid maintenance Buildings Furniture 50,000 100,000 1,000 800,000 100,000 Equipment Allowance for doubtful accounts Accumulated depression Retained earnings 200,000 2,000 400,000 241,000(3) (1) Fifty thousand of this mortgage payable must be paid on June 30, 2020. (2) The prepaid insurance of $4,000 pertains to the period of October 1, 2019- September 30, 2020. This account has not been adjusted to reflect expired insurance as of December 31, 2019. (3) This account has not been adjusted to reflect the "preliminary" net income of $20,000 for 2019 or information from note 2 above. Required: Prepare the balance sheet for Smith Foods at December 31, 2019. John Smith, manager of Smith Foods, needs assistance in preparing the company's balance sheet at December 31, 2019. Financial information available is as follows: Account Title Mortgage payable Accounts payable Account Balance $310,000(1) 30,000 Accounts receivable 25,000 Cash 10,000 Accrued expenses 15,000 Income taxes payable 10,000 Inventory--food 11,000 Inventory--supplies 2,000 Prepaid insurance 4,000(2) Common stock 275,000 Investments Land Prepaid maintenance Buildings Furniture 50,000 100,000 1,000 800,000 100,000 Equipment Allowance for doubtful accounts Accumulated depression Retained earnings 200,000 2,000 400,000 241,000(3) (1) Fifty thousand of this mortgage payable must be paid on June 30, 2020. (2) The prepaid insurance of $4,000 pertains to the period of October 1, 2019- September 30, 2020. This account has not been adjusted to reflect expired insurance as of December 31, 2019. (3) This account has not been adjusted to reflect the "preliminary" net income of $20,000 for 2019 or information from note 2 above. Required: Prepare the balance sheet for Smith Foods at December 31, 2019.

Answer rating: 100% (QA)

To prepare the balance sheet for Smith Foods at December 31 2019 we need to organize the given infor... View the full answer