Ex. 199
Compute the dollar amount of current assets based on the following account balances.
Accounts Payable $11,000 Accumulated Depreciation 27,000
Accounts Receivable 16,000 Cash24,000
Equipment 93,000 Prepaid Rent7,000
Short-term Investments 15,000
Ex. 200
The financial statement columns of the worksheet for The Coffee Pot at December 31, 2011, are as follows:
THE COFFEE POT
Worksheet
For the Year Ended December 31, 2011
Income Statement Balance Sheet
Accounts Debit Credit Debit Credit
Cash 15,000
Accounts Receivable 7,000
Supplies 4,000
Prepaid Insurance 6,000
Equipment 209,000
Accumulated Depreciation—Equipment 29,000
Accounts Payable 19,000
Note Payable 70,000
Salaries Payable 3,000
Common Stock 50,000
Retained Earnings 62,000
Dividends 14,000
Revenue 123,000
Advertising Expense 21,000
Depreciation Expense 12,000
Insurance Expense 3,000
Rent Expense 17,000
Salaries Expense 42,000
Supplies Expense 6,000
Totals101,000 123,000 255,000 233,000
Net Income 22,000 22,000
123,000 123,000 255,000 255,000
Instructions
(a)Calculate the retained earnings balance that would appear on a balance sheet at December 31, 2011.
(b)Prepare a classified balance sheet for The Coffee Pot at December 31, 2011 assuming the note payable is a long-term liability.