Construct a balance sheet from the following information. Accrued interest payable $4,000 Accumulated depreciation 30,000 Trade accounts payable 10,000 Retained earnings 86,000 Accrued wages 11,000 Work in process 5,000 Finished goods 30,000 Plant and equipment 100,000 Cash and marketable securities 10,000 Land 10,000 Accounts receivable 32,000 Allowance for doubtful accounts 2,000 Bank note (due in six months) 15,000 Long?term debt 15,000 Raw materials 7,000 Investments 10,000 Taxes due 1,000 Additional paid?in capital (capital surplus) 20,000 $1 par value common stock 20,000 shares authorized 10,000 shares outstanding

Question

What will be an ideal response?

Answer 1

Firm XYZBalance Sheet for the Period Ending December 31, 20XXAssetsCurrent assetsCash and marketable securities   $10,000Accounts receivable   $32,000Less allowance for doubtfulaccounts     (2,000)  30,000InventoryFinished goods    30,000Work in process    5,000Raw materials    7,000  42,000Total current assets      $82,000?Long?term assetsPlant and equipment  $100,000Less accumulateddepreciation   (30,000)  70,000Land          10,000Total long?term assets     $80,000?Investments        $ 10,000Total assets        $172,000?Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable       $10,000Accrued wages        11,000Bank notes        15,000Accrued interest payable     4,000Accrued taxes        1,000Total current liabilities     $41,000Long?term debt        $15,000Total liabilities       $56,000?Stockholders' equityCommon stock ($1 par value; 20,000shares authorized; 10,000 sharesoutstanding)        $10,000Paid?in capital       20,000Retained earnings       86,000Total stockholders' equity    $116,000?Total liabilities and stockholders' equity $172,000