Question
What does this classified balance sheet look like?
The following account balances are provided for eXacto Reproductions, Inc. at March 31, 2018 Title Accounts pavable Accounts receivable Note payable (due October 1, 2018) Cash Cossions payable Common stock (no par) Equipment (net) Interest payable Interest receivable Short-term investments Prepaid expenses Retained earnings Balance S 84,000 70,000 202,000 50,000 46,000 250,000 474.850 300 150 38,000 24,000 84,700 40,000 30,000 upplies Uneared revenue All April 2018 transactions follow 1. Provided services on account for a total of $355,000 2. Customers redeemed gift cards for $21,000 in services 3. Used S28,000 in supplies. 4. Sold an investment costing $18,000 for $22,000 cash 5. Paid accounts payable of $77,000 6. Collected $356,000 on customer accounts 7. Issued common stock for $125,000 8. Purchased a S75,000 printer in exchange for a note payable due on March 1, 2020 9. Paid $203,000 in salaries including a $13,000 advance on a May salary 10. Paid $86,000 in commissions including March commissions 11. Received a S1,500 bill for March utilities. 12. Paid $2,350 for April and May radio advertisements. 13. Received an interest payment of S300 including the interest accrued at 3/31/2018 14. Paid S9,000 for April rent 15. Paid income tax expense of $33,000 Required: a. b. Prepare a classified balance sheet at March 31. 2018 Prepare T-accounts for each of the accounts provided. Enter beginning balances. Record each of the April transactions in the .1 accounts and calculate ending balance for each account. Create new accounts as necessary Prepare a statement of cash flow for the month of April in good form. Use the statements on pages 77 and 135 as your guide c.
Explanation / Answer
a.
a.
Books of eXacto Reproductions,INC. Classified Balance Sheet as on 31st March, 2018 Particulars $ $ Particulars $ $ SHAREHOLDER'S EQUITY: FIXED ASSETS: Share capital 560000 Equipment(net) 474850 Retained Earnings 84700 644700 CURRENT ASSETS: CURRENT LIABILITIES: Cash 50000 Accounts payable 84000 Common Stock 250000 Note Payable 202000 Short Term Investment 38000 Commission Payable 46000 Interest Receivable 150 Interest Payable 300 332300 Accounts Receivable 70000 Prepaid Expenses 24000 Supplies on hand 40000 Unearned Revenue 30000 502150 Total 977000 Total 977000
