Prepare a Statement of Owner’s Equity and a Classified Balance Sheet as of December 31, 2021 for the Balance sheet:

1. Separate the assets and liabilities into Short-term and Long-term categories

Below the Accounts Receivable, subtract the total from $2,654 and call it “Allowance for Bad Debts”.

Below the Equipment, subtract the Accumulated Depreciation.
 

 

Transcribed Image Text:

The company has the following account balances as of December 31, 2021: Advertising Expense Salaries Expense Insurance Expense Rent Expense Utilities Expense 34,200 48,000 106,400 12,150 14,800 Owner Withdrawals 80,000 Interest Revenue 6,120 Cash Short-term Investments (asset) 27,600 Prepaid Insurance Buildings Accum. Depreciation-equip. 64,000 Salaries Payable Note Payable-due Jan. 2024 60,000 Sales Returns 32,580 Supplies Land 2,500 2,200 72,000 160,000 Equipment Accounts Payable Owner Capital Sales Revenue 128,990 46,500 288,210 3,240 841,700 8,390 Depreciation Expense-equip. 6,200 The company has the following account balances as of December 31, 2021: Advertising Expense Salaries Expense Insurance Expense Rent Expense Utilities Expense 34,200 48,000 106,400 12,150 14,800 Owner Withdrawals 80,000 Interest Revenue 6,120 Cash Short-term Investments (asset) 27,600 Prepaid Insurance Buildings Accum. Depreciation-equip. 64,000 Salaries Payable Note Payable-due Jan. 2024 60,000 Sales Returns 32,580 Supplies Land 2,500 2,200 72,000 160,000 Equipment Accounts Payable Owner Capital Sales Revenue 128,990 46,500 288,210 3,240 841,700 8,390 Depreciation Expense-equip. 6,200

Answer rating: 100% (QA)

Answer Balance Sheet As on 31 Dec 2021 Assets Current Assets Cash 32580 Suppl... View the full answer