Question

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2018, the end of its fiscal year: cash, $16,000, accounts receivable. $11,000. Inventories, $25.000, equipment (net) $80,000, accounts payable, $14,000wages payable. $9.000, interest payable, $1,000, note payable (due in 18 months). $30,000, common stock, $50,000. Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $140,000. (Amounts to be deducted should be indicated by a minus sign.) K AND J NURSERY, INC. Balance Sheet At December 31, 2018

Answer 1

$ 52,000 K. AND J NURSERY.INC. Balance Sheet At December 31.2018 Assets Current assets Cash $ 16,000 Accounts Receivables $ 11,000 Inventories $ 25,000 Total Current Assets Property, Plant and Equipment Equipment S 140,000 Less: Accumulated Depreciation - Equipment $ 60,000 Total assets Liabilities and Stockholders' Equity Currentliabilities Accounts Payable $ 14,000 Wages Payable S 9.000 Interest payable $ 1.000 Total current liabilities $ 24.000 Long term Liabilities Notes Payable S 30.000 Total Liabilities S 80.000 $ 132,000 $ 54,000

Stockholders' Equity Common stock Retained earnings Total stockholders' Equity Total Liabilities and Stockholders' Equity $ S 50,000 28.000 $ $ 78,000 132,000 Working Notes: Total assets = total Liabilities and stockholders Equity Total assets = total liabilities + common stock+Retained Earnings $132.000 = $54,000 + $50,000+Retained Earnings Retained Earnings = $132,000-$54,000-$50.000 = $28.000