Problem 2: The Balance Sheet (20 points)

The following are the ending balances of accounts at December 31, 2021, for Barnstable Corporation. All accounts have a natural balance (e.g., cash has a debit balance).

Account Title	Balance
Accounts payable	$	104,000
Accounts receivable		89,600
Accumulated depreciationbuildings		160,000
Accumulated depreciationequipment		40,000
Allowance for uncollectible accounts		8,000
Buildings		480,000
Cash		40,000
Common stock		320,000
Copyright (net)		19,200
Equipment		120,000
Interest payable		16,000
Inventory		129,600
Investment in equity securities		70,400
Land		192,000
Notes payable		400,000
Prepaid expenses		51,200
Retained earnings 12/31/2021		112,000
Unearned revenue		32,000

Additional Information:

1. The $192,000 balance in the land account consists of $160,000 for the cost of land where the plant and office buildings are located. The remaining $32,000 represents the cost of land being held for speculation.
2. The $70,400 balance in the investment in equity securities account represents an investment in the common stock of another corporation. Barnstable intends to sell one-quarter of the stock within the next year and keep the remaining three-quarters as a long-term investment.
3. The prepaid expenses represent amounts paid for advertising services for the next eight months.
4. The unearned revenue represents a service contract for which Barnstable has committed to providing services evenly over the next two years.
5. The notes payable account consists of a $160,000 note due in six months and a $240,000 note due in three annual installments of $80,000 each, with the first payment due in August of 2022.

Required

Prepare your answers to the four questions on the next page for Barnstable Company.

SHOW ALL WORK ON THE FOLLOWING PAGE.

PROBLEM 2, continued

1. Prepare the Current Assets section to be reported on Barnstable Companys December 31, 2021 balance sheet.

2. Prepare the Property, Plant & Equipment section to be reported on Barnstable Companys December 31, 2021 balance sheet.

3. Prepare the Current Liabilities section to be reported on Barnstable Companys December 31, 2021 balance sheet.

4. Calculate the amount to be reported for Total Liabilities and Stockholders Equity on Barnstable Companys December 31, 2021 balance sheet.