ich Corp. provides security systems for residential and commercial establishment

Question

ich Corp. provides security systems for residential and commercial establishments. The company isclosed the following account balances found in its ledger on 12/31/18 as well as the information that ollows: Equipment Common stock Prepaid insurance Cash and cash equivalents Wages payable Allowance for doubtful accounts Deferred revenue Discount on long-term debt 300,000Accumulated depreciation Patent net of amortization $70,000 50,000 50,000 80,000 Long-term debt (bonds payable 120,000 95,000 75,000 90,000 320,000 Accounts Receivable 75,000 Marketable securities 15,000 Inventory 180,000 Taxes payable 35,000 Additional paid-in capital 180,000 100,000 capital in excess of par ??2 Supplies The cash and cash equivalents balance contains cash that is legally-restricted and tied to its long- The inventory account is expressed at cost. Recent shifts in competition have reduced the market Retained earnings 10,000 term debt as part of a sinking fund. The company must keep $130,000 in a sinking fund to ensure solvency of the debt. value of the inventory to $55,000. $120,000 of the deferred revenue represent security contracts for installations that will be serviced by the end of 2019. S60,000 represents contracts for alarm monitoring that span equally over 2019 and 2020. All marketable securities are intended to be sold in the coming year. Provide dollar values for the subtotals listed below as of 12/31/18. Subtotal Dollar Value (12/31/18) Current Assets (7 points) Property, Plant and Equipment (2 points) Long-term investments (1 point) Current liabilities (4 points) Long-term liabilities (3 points) Retained earnings (3 points)

Explanation / Answer

Balance Sheet as on 31-12-2018 from ledger balances given -

(Please take totals for each group as answer to the question)

Deferred Revenue

(120,000 for 2019 and 60000/2 for 2019)

Cash and Cash Equi

(320,000-130,000)

Accounts Receivable -95000

(Less)Doubtful debts - 15000

Liabilities Amount in $ Asset Amount in $ Capital 100,000 Property Plant and Equipment Retained Earmings (balancing figure) 260,000 Equipment - 300,000 Long Term Liability Less: Depreciation - (70000) 230,000 Long Term debts 120,000 Patents 50,000 Discount on Long term debt 35,000 280,000 Deferred Revenue (for 2020) 30,000 Long Term investments 185,000 Stock 50,000 Current Liabilities Snking Fund 130,000

Deferred Revenue

(120,000 for 2019 and 60000/2 for 2019)

150,000 180,000 Wages Payable 75,000 Current Assets Taxes Payable 180,000

Cash and Cash Equi

(320,000-130,000)

190,000 405,000 Inventory 55,000 Prepaid Insurance 80,000

Accounts Receivable -95000

(Less)Doubtful debts - 15000

80,000 Marketable Securities 75,000 Supplies 10,000 490,000 Grand Total 950,000 Grand Total 950,000

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