Question

Kansas Instruments Adjusted Trial Balance (incorrect order) December 31, 2021 $ 20,000 130,000 24,000 100,000 3,000 Vins A l or loc de cuits 130.000 - 13.000 = $ 5,000 32,000 50,000 1,300,000 620,000 42,000 89,000 300,000 Cash Accounts receivable Raw materials 2 Note receivable Interest receivable Interest payable Marketable securities Land Buildings Accurnulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net of amortization) Prepaid rent (for the next two years) Deferred revenue Accounts payable Note payable Cash restricted for payment of note payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Common stock Retained Earnings 130,000 120,000 60,000 - GOO 2 ) =30000 och 36,000 - 36,600213,000 180,000 400,000 - Nole 80,000 02-2009 13,000 800,000 450,000 28,000 445,000 199,000 $2,828,000 $ 2,828,000 Additional information: 1. The note receivable, along with any accrued interest, is due on November 22, 2022. 2. The note payable is due in 2025. Interest is payable annually. 3. The marketable securities consist of treasury bills, all of which mature in the next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Page 2

Hi, please can you help me to create this Balance Sheet. I started but I don't think it is correct, so I would like it if you can do it and explain it, so I can see my mistakes and learn from it. Thank you in advance!!

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Kanas Instruments

First we have to prepare Income statement and Statement of Retained Earnings. Then we will prepare Balance Sheet.

Income statement	Amount $
Sales Revenue	800,000.00
Less: Cost of goods	450,000.00
Gross profit	350,000.00
Less: Rent expense	28,000.00
Net profit	322,000.00
Statement of Retained Earnings
Opening Balance	199,000.00
Add: Net Profit	322,000.00
Less: Dividends	-
Closing Balance	521,000.00

Balance Sheet
As at 31st December, 2021
Assets	Amount $	Amount $	Note
Current Assets
Cash and cash equivalents		20,000.00
Accounts Receivable	130,000.00
Allowance for uncollectible accounts	(13,000.00)	117,000.00
Note Receivable		100,000.00
Interest Receivable		3,000.00
Prepaid rent- Current portion		30,000.00	See note A
Inventories
Raw materials	24,000.00
Work in Process	42,000.00
Finished goods	89,000.00	155,000.00
Current Assets		425,000.00
Investments
Marketable Securities		32,000.00
Investments		32,000.00
Plant, Property & Equipment
Land		50,000.00
Building	1,300,000.00
Accumulated depreciation	(620,000.00)	680,000.00
Equipment	300,000.00
Accumulated depreciation	(130,000.00)	170,000.00
Plant, Property & Equipment		900,000.00
Intangible Assets
Patent (net)	120,000.00
Intangible Assets		120,000.00
Other Assets
Restricted cash balance	80,000.00
Prepaid rent- Non Current portion	30,000.00		See note A
Other Assets		110,000.00
Total Assets		1,587,000.00
Liabilities
Current Liabilities
Accounts Payables	180,000.00
Interest Payable	5,000.00
Current portion of Deferred Revenue	18,000.00		See note B
Current Liabilities		203,000.00
Long Term Liabilities
Non Current portion of Deferred Revenue	18,000.00		See note B
Notes Payable	400,000.00
Long Term Liabilities		418,000.00
Total Liabilities		621,000.00
Shareholder's Equity
Common Stock	445,000.00
Retained Earnings	521,000.00
Total Shareholder's Equity		966,000.00
Total Liabilities & Shareholder's Equity		1,587,000.00

Note/Workings
Note A	Amount $
Prepaid rent	60,000.00	C
Current portion	30,000.00	D=C/2
Non Current portion	30,000.00	E=C-D
Note B	Amount $
Deferred Revenue	36,000.00	F
Current portion	18,000.00	G=F/2
Non Current portion	18,000.00	H=F-G