Question

E2-16 Preparing a Balance Sheet LO2-5 Higgins Company began operations last year. You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of the current year, Higgins's T account balances were as follows: Assets Cash 4,800 Short-Term Investments and Equipment 3,000 ro 2,300 Liabilities Short-Term Notes Payable Long-Term Notes Payable 370 Common Stock Additional Paid-in Capital Retained Earnings 450 3,150 4,530 The following transactions occured in current year: a. Borrowed $2,800 from a local bank, signing a note due in three years. b. Sold $1,100 of the investments for $1,100 cash. C. Sold one-half of the property and equipment for $1,500 in cash. d. Declared and paid $350 in cash dividends to stockholders. Required Prepare a classified balance sheet at December 31 of the current year HIGGINS COMPANY Balance Sheet At December 31 Assets Liabilities Current assets Current liabilities Cash 1,600 9,850 Short-term notes payable 1,200 Short-term investments Total current liabilities 1,600 g-term notes payable 3,170 Total current assets 11,050 Total liabilities 4,770 Non-current assets: Stockholders' Equity

I need help filling in the stock holder's equity section!!!

Answer 1

Answer:

Higgins Company
Balance Sheet At December 31
Assets	($)	Liabilities	($)
Current assets		Current liabilities
Cash	9,850	Short-term notes payable	1,600
Short-term Investment	1,200
Total Current assets	11,050	Current liabilities total	1,600
		Long-term notes payable	3,170
Non-current assets
Property and equipment	1,500	Total liabilities	4,770
		Stockholders' Equity
Total Non-current assets	1,500	Common stock	450
		Retained eamings	4,180
		Additional Paid in Capital	3,150
		Total Stockholder's equity	7,780
Total Assets	$ 12,550	Total Liabilities&Stockholders' Equity	$ 12,550

Additional Paid in Capital
		By Balance b/d.	3,150
By Balance c/d.	3,150
	3,150		3,150
Retained Earnings
To Dividend	350	By Balance b/d.	4,530
To Balance C\d.	4,180
	4,530		4,530
Common Stock
		By Balance b/d.	450
By Balance c/d.	450
	450		450