Prepare a classified Balance Sheet, dated 12-31-18, for these 3 situations:

Situation 1

12-31-18 Assets:
Cash ………………………………. 183,000
Accounts Rec. ………………...…..…… 274,000
Inventory ………………...………………. 175,000
Equipment, Net of Accum. Depr. …….. 750,000

12-31-18 Liabilities:
Accounts Pay. ………………...…..…… 72,000
Short-Term Notes Payable …...…..…… 295,000
Long-Term Notes Payable …...…..… … 388,000

12-31-18 Equity:
Business is named Happy Productions and is owned solely by Harry Happy.
(You will have to determine the equity amount)

Situation 2
Business is named Aztec Partners and is owned by Judy Smith and Al Topp
Assets and Liabilities are the same as situation 1.

Equity-

Capital as of 1-1-18:
Judy ………………………………………. 151,000
Al, ……………………………………….. 184,000

Capital Contributed in 2018:
Judy …………………………………….. -  
Al ………………………………………… -  

Drawings ,2018:
Judy ……………………………………. 55,000
Al ……………………………………….. 82,000

Share of Profits ,every year:
Judy …………………………………… 0.4
Al …………………………………….. 0.6

Situation 3
Business is a corporation named Aztec, Inc.
Assets and Liabilities are the same as situation 1.

Equity-
Paid in Capital(Common Stock) as of 12-31-18 is ………………. 611,000

Answer rating: 100% (QA)

Answer Situation 1 Happy Productions Balance Sheet As of December 31 2018 Assets Amount Liabilities ... View the full answer