Question

The following is a December 31, 2018, post-closing trial balance for the Jackson Corporation.

Account Title		Debits			Credits
Cash	$	43,000
Accounts receivable		37,000
Inventories		78,000
Prepaid rent for the next 8 months		19,000
Marketable securities (short term)		13,000
Machinery		160,000
Accumulated depreciation—machinery				$	14,000
Patent (net of amortization)		82,000
Accounts payable					9,500
Wages payable					5,500
Taxes payable					35,000
Bonds payable (due in 10 years)					170,000
Common stock					130,000
Retained earnings					68,000
Totals	$	432,000		$	432,000

Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Balance sheet

Assets
Current assets
Cash	43,000
Accounts receivable	37,000
Inventories	78,000
Prepaid rent	19,000
Marketable securities	13,000
Total current assets	190,000
Property, plant and equipment
Machinery	160,000
Accumulated depreciation	- 14,000
Patent	82,000
Net property, plant and equipment	228,000
Total assets	418,000
Liabilities and Stockholders' equity
Current liabilities
Accounts payable	9,500
Wages payable	5,500
Taxes payable	35,000
Total current liabilities	50,000
Long term liabilities
Bonds payable	170,000
Total long term liabilities	170,000
Stockholders' equity
Common stock	130,000
Retained earnings	68,000
Total stockholders' equity	198,000
Total liabilities and stockholders' equity	418,000

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