Question

Prepare a classified balance sheet for Oxmoor at December 31, 2019.

Preparing a Balance Sheet Oxmoor Corporation prepared the following adjusted trial balance. Oxmoor Corporation Adjusted Trial Balance December 31, 2019 Debit Credit Account Cash $13,300 Accounts Receivable 6,700 Prepaid Rent 54,000 Inventory 481,400 Long-Term Investment 110,900 Equipment 88,000 Accumulated Depreciation $23,700 Accounts Payable 111,700 Interest Payable 4,400 Note Payable (short-term) 50,000 Bonds Payable 180,000 Common Stock 300,000 Retained Earnings, 1/1/2019 45,635 Dividends 50,000 Sales Revenue 583,900 Cost of Goods Sold 277,000 Wages Expense 98,250 Rent Expense 50,000 Depreciation Expense 29,000 Interest Expense 2,700 38,085 Income Taxes Expense Totals $1,299,335 $1,299,335

Answer 1

Before Preparing Classified Balance Sheet, we need to prepare Income Statement and Statement of Retained Earnings, because These financial statements are related to each other and prepared Step by Step.

Oxmoor Corporation

Income Statement

For the Year Ended December 31,2019

Accounts	Amount	Amount
Sales Revenue	$583,900
Less:- Cost of Goods Sold	(277,000)
Gross Profit		$306,900
Less:- Expenses
Wages Expense	$98,250
Rent Expense	50,000
Depreciation Expense	29,000
Interest Expense	2,700
Income Tax Expense	38,085
Total Expenses		$(218,035)
Net Income		$88,865

Oxmoor Corporation

Statement of Retained Earnings

For the Year Ended December 31,2019

Accounts	Amount
Retained Earnings 1/1/2019	$45,635
Add:- Net Income	88,865
	$134,500
Less:- Dividends	(50,000)
Retained Earnings 31/12/2019	$84,500

Oxmoor Corporation

Balance Sheet

December 31,2019

Accounts	Amount	Amount
Assets:-
Current Assets:-
Cash	$13,300
Accounts Receivable	6,700
Prepaid Rent	54,000
Inventory	481,400
Total Current Assets		$555,400
Long-term Investments:-
Long-term Investment	$110,900
Total Long-term Investments		$110,900
Property Plant and Equipment:-
Equipment	$88,000
Less:- Accumulated Depreciation	(23,700)
Total Property Plant and Equipment		$64,300
Total Assets		$730,600
Liabilities and Stockholders Equity:-
Current Liabilities:-
Accounts Payable	$111,700
Interest Payable	4,400
Note Payable (Short-term)	50,000
Total Current Liabilities		$166,100
Long-term Liabilities:-
Bonds Payable	$180,000
Total Long-term Liabilities		$180,000
Stockholders Equity:-
Common Stock	$300,000
Retained Earnings, 31/12/2019	84,500
Total Stockholders Equity		$384,500
Total Liabilities and Stockholders Equity		$730,600