Problem:
Please help with preparing a balance sheet using the following information.
Please refer to attached file for the trial balance as of December 31, 2011.
Additional Information:
1. Dividends declared during 2011 totaled $15,000. Only $10,000 of the dividends declared in 2011 have been paid as of December 31, 2011. The unpaid dividends have not been recorded.
2. Operations generated $400,000 of revenue for 2011. Expenses recorded totaled $325,000. Additional adjustments required are as follows:
a. The allowance for doubtful accounts should be adjusted to 10 percent of accounts receivable.
b. Prepaid insurance of $4,000 is the premium paid for insurance coverage for July 1, 2011, through June 30, 2012.
c. Unrecorded depreciation expense for 2011 totals $20,500.
d. Income taxes have not been recorded. Best's average rate is 20 percent.
3. The Long-Term Debt account includes $25,000, which must be paid on June 30, 2012.
Required Task: Prepare a balance sheet according to the USALI format below. (Please refer to attachment again to view format and what is required).
Attachment:- Trial Balance and Balance Sheet Outline.rar