Question

Swed The following is the ending balances of accounts at June 30, 2021. for Excell Company Credits $ Debits 113,000 95,000 310.000 62,000 105,000 350,000 Account Title Cash Short-term investments Accounts receivable (net) Prepaid expenses (for the next 12 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Accounts payable Accrued liabilities Notes payable Mortgage payable Con stock Retained earnings Totals $ 125,000 280,000 130,00 Additional information: 1. The short-term investments account includes $33,000 in US treasury buls purchased in Mayebils mature in July, 2021 2. The accounts receivable account consists of the following: (19,00) b. Allowance for uncollectible accounts trade customers c. Mantrade notes receivable (due in three years) d. Interest receivable on notes (due in four months) 3. The notes payable account consists of two notes of $65,000 each. One note is due on September 30, 2021, and the other is due on November 30, 2022 4. The mortgage payable is a loan payable to the bank in semiannual installments of $7,000 each plus interest. The next payment is due on October 31, 2021 Interest has been properly accrued and is included in accrued expenses 5. Eight hundred thousand shares of no par common stock are authorized, of which 500,000 shares have been issued and are outstanding 6. The land account includes $65 000 representing the cost of the land on which the company's office building resides. The remaining $40000 is the cost of land that the company is holding for investment purposes. Required: Prepare a classified balance sheet for the Excell Company at June 30, 2021 (Amounts to be deducted should be indicated by a minus sign.) < Prev 3 of 3 Next >

Answer 1

Answer- EXCELL COMPANY

Balance Sheet

AS at June 30,2021

ASSETS	Amount ($)	Amount ($)
Current Assets:-
Cash and cash equivalents	146,000
Short-term investments	62,000
Accounts Receivable, net of allowance for uncollectible accounts of $19,000	227,000
Interest Receivable	3,000
Prepaid Expenses	62,000
Total Current Assets		500,000
Investments:-
Notes Receivable (Non trade)	80,000
Land held for sale	40,000
Total Investments		120,000
Property,Plant and Equipment Assets:-
Land	65,000
Buildings	350,000
Equipment	280,000
Less: Accumulated Depreciation	(310,000)
Net Property, Plant and Equipment		385,000
Total Assets		1,005,000
LIABILITIES AND STOCKHOLDERS" EQUITY
Current Liabilities:-
Accounts Payable	188,000
Accrued Expenses	60,000
Notes Payable	65,000
Current maturities of long term debt	14,000
Total Current Liabilities		327,000
Long-term Liabilities:-
Notes Payable	65,000
Mortgage Payable	336,000
Total Long-term Liabilities		401,000
Stockholders' Equity:-
Common Stock No par Value,800,000 shares authorized, 500,000 shares issued and outstanding	250,000
Retained earnings	27,000
Total Stockholders' Equity		277,000
Total Liabilities and Stockholders' Equity		1,005,000

Working Notes:-

Cash and cash equivalents= Cash as per trial balance+ Amount of U.S.treasury bills

=$113,000+$33,000
=$146,000

Short term investments= Short term investment as per trial balance- Amount of U.S. treasury bills

=$95,000-$33,000

=$62,000

Accounts Receivable, net of allowance for uncollectible accounts =Amount owned by customers- Allowance for uncollectible accounts

=$246,000-$19,000

=$227,000

Mortgage Payable= Mortgage payable as per trial balance-Semiannual installment plus interest

=$350,000-$14,000

=$336,000

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