The ledger of Bama Inc. had the following account balances on December 31, 2020. Accounts payable $16,600 Office equipment $4,750 Accounts receivable 4,750 Raw materials inventory 4,800 Accrued expenses (credit) 400 Allowance for bad debts 250 Bonds payable, 8% 12,500 Accumulated depreciation 4,500 Common stock ($100 par) 35,000 Rent expense paid in advance on a short-term lease 1,500 Cash 5,000 Sinking fund to retire long-term debt 3,500 Retained earnings (to be computed) ? Land held for future plant site 7,000 Plant equipment 15,600 Note receivable, 9%, due 2022 3,375 Finished goods inventory 6,550 Work in process inventory 11,650 Investments* 6,500 *Of the balance in the investments account, $2,000 will be converted to cash in the coming year; the remainder is a long-term investment. Required Prepare a classified balance sheet for Bama Inc. on December 31, 2020. Do not use negative signs with any of your answers. List investments in the order of the largest dollar amount to the

Answer rating: 100% (QA)

1 Bad debt allowance in trial balance 2600cr Bad debts finalised due to bankruptcy of Bunkys Bicycle ... View the full answer