6. Using the following accounts prepare a balance sheet for ASL. Incorporated (a

Question

6. Using the following accounts prepare a balance sheet for ASL. Incorporated (a retail company) for the year ending December 31, 2017 Tm Accounts payable Accrued expenses Accumulated depreciation Additional paid-in capital Allowance for doubtful accounts Cash Common stock (S0.20 par) Current portion of L.T. Debt Gross accounts receivable Gross fixed assets Inventories Long term debt Net accounts receivable Net fixed assets Retained earnings Short-term bank loan (notes payable) 39,000 8,000 51,000 86,000 2,000 23,000 45,000 6,000 40,000 486,000 54.000 210,000 38,000 435,000 138,000 18,000

Explanation / Answer

Note that Non-current liability = Long-term debt = Reported long term debt + Current portion of LT Debt

= $210,000 + $6,000

= $216,000

BALANCE SHEET AS AT DECEMBER 31, 2017 $ ASSETS CURRENT ASSETS:    Cash 23,000    Inventories 54,000    Gross Accounts receivables: 40,000    Less: Allowance for Doubtful Accounts 2,000    Net Accounts receivables 38,000 Total Current Assets 1,15,000 NON-CURRENT ASSETS:    Gross Fixed Assets: 4,86,000    Less: Accumulated Depreciation 51,000    Net Fixed Assets 4,35,000 TOTAL ASSETS 5,50,000 LIABILITIES AND EQUITY CURRENT LIABILITIES:    Accounts Payable 39,000    Accrued Expenses 8,000    Short term bank loan (Notes payable) 18,000 Total Current Liabilities 65,000 NON-CURRENT LIABILITIES:    Long Term Debt 2,16,000 TOTAL LIABILITIES 2,81,000 Common Stock ($0.20 par) 45,000 Additional Paid-in Capital 86,000 Retained Earnings 1,38,000 TOTAL EQUITY 2,69,000 TOTAL LIABILITIES AND EQUITY 5,50,000

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