Required Using the information from the alphabetized post-closing trial balance

Required Using the information from the alphabetized post-closing trial balance below, prepare a classified balance sheet for Waratah Pharmaceuticals Inc. as at March 31, 2014. Be sure to use proper form including all appropriate subtotals.

Account Description.....................Account Balance*

Accounts payable .................................................................................. $ 20,400

Accounts receivable .............................................................................. 67,200

Accumulated amortization, patent........................................................ 50,400

Accumulated depreciation, equipment.................................................. 148,800

Accumulated depreciation, vehicles ....................................................... 62,400

Advertising payable ............................................................................... 3,000

Allowance for doubtful accounts........................................................... 3,600

Cash..................................................................................................... 28,800

Common shares, 100,000 shares authorized; 25,000 shares

were issued at an average price of $9.60; market price per share on

March 31, 2014, was $10.80................................................................................ ?

Equipment............................................................................................ 468,000

Income tax payable ............................................................................... 55,200

Notes payable** .................................................................................... 144,000

Patent ................................................................................................... 115,200

Prepaid rent .......................................................................................... 55,200

Retained earnings................................................................................................. ?

Unearned revenues ............................................................................... 27,600

Vehicles ................................................................................................. 81,600


Analysis Component:

1. What percentage of the assets is financed by debt?

2. What percentage of the assets is financed by equity?

3. Assuming that 37% of the company’s assets were financed by debt at March 31, 2013, has the balance sheet been strengthened over the current year?


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