The following is a June 30, 2013, post-closing trial balance for Excell Company. Additional Information: 1. The
Question:
The following is a June 30, 2013, post-closing trial balance for Excell Company.
Additional Information:
1. The short-term investments account includes $18,000 in U.S. treasury bills purchased in May. The bills mature in July.
2. The accounts receivable account consists of the following:
a. Amounts owed by customers $225,000
b. Allowance for uncollectible accounts—trade customers (15,000)
c. Nontrade note receivable (due in three years) 65,000
d. Interest receivable on note (due in four months) 5,000
Total $280,000
3. The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2013, and the other is due on November 30, 2014.
4. The mortgage payable is payable in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2013. Interest has been properly accrued and is included in accrued expenses.
5. Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding.
6. The land account includes $50,000 representing the cost of the land on which the company’s office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes.
Required:
Prepare a classified balance sheet for the Excell Company at June 30, 2013.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson