Reference no: EM132624418
Question - Computing Retained Earnings and Preparing a Classified Balance Sheet
The following data, in no particular order, are from the accounts of Brown Corp. as of December 31, 2020, its annual year-end. All amounts are accurate, all accounts have normal balances, and total debits equal total credits.
Accounts payable (trade) $12,800
Deferred revenue $3,200
Debt retirement fund (long-term) 6,400
Cash dividends payable 8,000
Accounts receivable 27,200
Inventory 48,000
Income taxes payable 6,400
Land held for future business site 28,800
Short-term investments, marketable securities (cost which approximates fair value) 16,000
Equipment and furniture 112,000
Bonds payable (long-term) 81,600
Net income for 2020 56,000
Accumulated depreciation, equipment and furniture 9,600
Dividends (cash) declared (a debit) 4,800
Common stock, par $1 (100,000 shares authorized) 112,000
Prepaid expenses (short-term) 1,600
Cash 32,000
Patent 6,400
Retained earnings, December 31, 2019 27,200
Prepaid rent (long-term) 3,200
Allowance for doubtful accounts 3,200
Investment in capital stock of Zinc Products Corporation (long-term) 41,600
Premium on common stock 8,000
Required -
a. Compute the year-end balance of retained earnings.
b. Classified balance sheet as of December 31, 2020.
Do not use negative signs with any of your answers.
List investments and current liabilities in the order of the largest dollar amount to the smallest dollar amount.