Problem: The following accounts appeared on the trial balance of Elbert Company at December 31, 2008. All accounts have normal balances.
|
Notes Payable
|
$64,000
|
Accounts Receivable
|
$172,800
|
|
Accumulated Depreciation - Bldg.
|
$261,000
|
Prepaid Expenses
|
$18,750
|
|
Supplies on Hand
|
$12,600
|
Customers' Deposits
|
$1,250
|
|
Accrued Salaries and Wages
|
$11,400
|
Common Stock***
|
$375,000
|
|
*Investments in Debt Securities
|
$93,800
|
|
|
|
Cash
|
$56,750
|
Inventories (average cost)
|
$526.750
|
|
Bonds Payable Due 1/1/12
|
$400,000
|
Land at Cost
|
$155,000
|
|
Allowance for Doubtful Accts.
|
$2,600
|
Trading Securities****
|
$24,400
|
|
Franchise
|
$64,300
|
Accrued Interest on Notes Payable
|
$650
|
|
Notes Receivable
|
$46,000
|
Buildings at Cost
|
$642,000
|
|
Income Taxes Payable
|
$52,000
|
Accounts Payable
|
$136,650
|
|
Preferred Stock**
|
$250,000
|
Additional Paid-in Capital
|
$54,600
|
|
Appropriated Retained Earnings
|
$98,000
|
|
|
|
Unappropriated Retained Earnings
|
$106,000
|
|
|
The company intends to hold the securities until maturity, which is in ten years.
8% cumulative; $10 par value; 25,000 shares authorized and outstanding.
$1 par value; 400,000 shares authorized; 375,000 shares issued and outstanding.
The company intends to sell the trading securities in the next year.
Directions: Prepare a classified balance sheet for Elbert Company on December 31, 2008 on a separate Excel spreadsheet as directed on the problem.