Question

Prepare a Classified Balance Sheet

The following is a list of accounts of the Dienstag Company for the current year end (December 31, 2020. All of the accounts have normal balances. You are being asked to prepare an Income Statement, a statement of Retained Earnings and a classified Balance Sheet. Accounts Payable $48,000 Administrative Salary Expense $400,000 Accounts Receivable 32,000 64,000 Beginning Inventory Freight -In 56,000 48,000 Accumulated Depreciation - Building Freight-out Expense Allowance for Uncollectible Accounts 64,000 0,000 Ending Inventory Land 32,000 200,000 Land Held for Future Use Amortization Expense Bonds Payable Building 24,000 320,000 720,000 Purchases 280,000 440,000 568,000 Beginning Retained Earnings Cash Salaries Payable Common Stock Sales 56,000 400,000 120,000 56,000 40,000 25,600 16,000 1,600,000 400,000 80,000 Dividends Declared Depreciation Expense Copyright Income Taxes Payable Marketing Salary Expense Utility Expense Income Tax Expense 40%

Answer 1

Dienstag Company
Balance Sheet
As of December 31, 2020
Assets
Current Assets
Cash		56,000
Accounts Receivable	32,000
Less: Allowance for Doubtful Accounts	-	32,000
Inventory		32,000
Total Current Assets			120,000
Long-term investments
Land Held for Future Use			280,000
Property, Plant, and Equipment
Land		200,000
Building	720,000
Less: Accumulated Depreciation - Building	64,000	656,000
Total Property, Plant, and Equipment			856,000
Intangible Assets
Copyright			40,000
Total Assets			1,296,000
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable		48,000
Income Tax Payable		25,600
Salaries Payable		16,000
Total Current Liabilities		89,600
Long-term Liabilities
Bonds Payable		320,000
Total Liabilities			409,600
Stockholders' Equity
Common Stock		400,000
Retained Earnings		486,400
Total Stockholders' Equity			886,400
Total Liabilities and Stockholders' Equity			1,296,000