- For each of the following balance sheet items, indicate the appropriate classification category from the dropdown list.
Note: If the item is a contra account, select the appropriate classification category with “- contra” from the dropdown list.
1.Property, plant, and equipment
- Current liabilities
- Investments
4.Current assets-contra
5.Long-term liabilities
6.Current liabilities
7.Current liabilities
8.Retained eamings
9.Investments
10.Current assets
11.Intangible assets
12.Property, plant, and equipment
13.Current liabilities
14.Current assets
15.Paid-in capital
16.Property, plant, and equipment
17.Current assets
18.Current liabilities
- The following is a December 31, 2024, post-closing trial balance for the Jackson Corporation.
| Account Title | Debits | Credits |
| Cash | $ 55,000 | |
| Accounts receivable | 49,000 | |
| Inventory | 90,000 | |
| Prepaid rent (for the next 8 months) | 31,000 | |
| Investment in equity securities (short term) | 25,000 | |
| Machinery | 220,000 | |
| Accumulated depreciation | $ 26,000 | |
| Patent (net) | 94,000 | |
| Accounts payable | 15,500 | |
| Salaries payable | 11,500 | |
| Income taxes payable | 47,000 | |
| Bonds payable (due in 10 years) | 220,000 | |
| Common stock | 180,000 | |
| Retained earnings | 64,000 | |
| Totals | $ 564,000 | $ 564,000 |
Required:
Prepare a classified balance sheet for Jackson Corporation at December 31, 2024, by properly classifying each of the accounts.
Note: Amounts to be deducted should be indicated by a minus sign.
- Tech Supplies Company, Incorporated, is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 1, 2020, are shown below.
| Tech Supplies Company, Incorporated | |
| Balance Sheet | |
| At February 1, 2020 | |
| ($ in millions) | |
| Assets | |
| Current assets: | |
| Cash and cash equivalents | $ 2,176 |
| Accounts receivable (net) | 1,262 |
| Inventory | 5,071 |
| Other current assets | 432 |
| Total current assets | 8,941 |
| Long-term assets | 3,733 |
| Total assets | $ 12,674 |
| Liabilities and Shareholders’ Equity | |
| Current liabilities: | |
| Accounts payable | $ 5,450 |
| Other current liabilities | 4,475 |
| Total current liabilities | 9,925 |
| Long-term liabilities | 2,256 |
| Shareholders’ equity | 493 |
| Total liabilities and shareholders’ equity | $ 12,674 |
| Tech Supplies Company, Incorporated | |
| Income Statement | |
| For the Year Ended February 1, 2020 | |
| ($ in millions) | |
| Revenues | $ 39,628 |
| Costs and expenses | 38,173 |
| Operating income | 1,455 |
| Other income (expense)* | (85) |
| Income before income taxes | 1,370 |
| Income tax expense | 803 |
| Net income | $ 567 |
*Footnote asteriskIncludes $260 of interest expense.
Required:
1-a. Calculate the current ratio for Tech Supplies for its fiscal year ended February 1, 2020.
1-b. Calculate the acid-test ratio for Tech Supplies for its fiscal year ended February 1, 2020.
1-c. Calculate the debt to equity ratio for Tech Supplies for its fiscal year ended February 1, 2020.
1-d. Calculate the times interest earned ratio for Tech Supplies for its fiscal year ended February 1, 2020.
Note: For all requirements, round your answers to 2 decimal places.
- The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following:
| Inventory | $ 850,000 |
| Total assets | $ 2,900,000 |
| Current ratio | 2.60 |
| Acid-test ratio | 1.60 |
| Debt to equity ratio | 1.9 |
Required:
Determine the following balance sheet items:
- Current assets
- Shareholders’ equity
- Long-term assets
- Long-term liabilities
- The following is the ending balances of accounts at December 31, 2024, for the Vosburgh Electronics Corporation.
| Account Title | Debits | Credits |
| Cash | $ 87,000 | |
| Short-term investments | 202,000 | |
| Accounts receivable | 143,000 | |
| Long-term investments | 45,000 | |
| Inventory | 225,000 | |
| Receivables from employees | 50,000 | |
| Prepaid expenses (for 2025) | 26,000 | |
| Land | 290,000 | |
| Building | 1,650,000 | |
| Equipment | 647,000 | |
| Patent (net) | 162,000 | |
| Franchise (net) | 50,000 | |
| Notes receivable | 300,000 | |
| Interest receivable | 22,000 | |
| Accumulated depreciation—building | $ 630,000 | |
| Accumulated depreciation—equipment | 220,000 | |
| Accounts payable | 199,000 | |
| Dividends payable (payable on 1/16/2025) | 20,000 | |
| Interest payable | 26,000 | |
| Income taxes payable | 50,000 | |
| Deferred revenue | 70,000 | |
| Notes payable | 320,000 | |
| Allowance for uncollectible accounts | 18,000 | |
| Common stock | 2,040,000 | |
| Retained earnings | 306,000 | |
| Totals | $ 3,899,000 | $ 3,899,000 |
Additional information:
- The receivables from employees are due on June 30, 2025.
- The notes receivable are due in installments of $60,000, payable on each September 30. Interest is payable annually.
- Short-term investments consist of securities that the company plans to sell in 2025 and $60,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2025. Long-term investments consist of securities that the company does not plan to sell in the next year.
- Deferred revenue represents payments from customers for extended service contracts. Seventy five percent of these contracts expire in 2025, the remainder in 2026.
- Notes payable consists of two notes, one for $110,000 due on January 15, 2026, and another for $210,000 due on June 30, 2027.
Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2024.
Note: Amounts to be deducted should be indicated by a minus sign.