Reference no: EM131651399
Problem - Presented below are balance sheet accounts for ABC Company for 2016.
General Ledger (G/L) Account Name Amount
Accounts payable 490,000
Accumulated depreciation - buildings 270,200
Accumulated depreciation - equipment 292,000
Bonds payable 300,000
Buildings 1,640,000
Cash 360,000
Common stock, $1 par 200,000
Discount on bonds payable 15,000
Equipment 1,470,000
Goodwill 125,000
Income taxes payable (due in 15 days) 98,362
Income taxes receivable 97,630
Inventory 239,800
Investments - debt securities (trading) 121,000
Land 480,000
Loan payable (due in 5 years) 480,000
Notes payable 265,000
Notes payable - due in 3 years 1,600,000
Notes receivable 445,700
Payroll taxes payable 177,591
Preferred stock, $10 par 150,000
Paid expenses 87,920
Rent payable (due in 30 days) 45,000
Retained earnings ?
Additional information:
a. Common stock authorized 400,000 shares
b. Preferred stock authorized 20,000 shares
c. Notes receivable and notes payable are considered current (short-term) by management, unless otherwise noted.
d. Investments - equity: cost and fair value are the same.
Use a separate sheet of paper to prepare classified balance sheet and statement of retained earnings.