Q4SE - Horngren'S Financial And Managerial Accounting

Question

Refer to the data in Short Exercise S4-1. Prepare Dalton’s classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form.

Step-by-Step Solution

Answer

DALTON HAIR STYLISTS
Balance Sheet
December 31, 2018
Assets
Current Assets:
Cash		$1,300
Office Supplies		1,800
Accounts Receivable		1,500
Total Current Assets			$4,600
Property, Plant, and Equipment:
Equipment	20,900
Less: Accumulated Depreciation- Equipment	(2,200)
Total Property, Plant, and Equipment:			18,700
Total Assets			$23,300
Liabilities
Current Liabilities:
Accounts Payable		$400
Interest Payable		500
Total Current Liabilities:			$900
Long-term Liabilities:
Notes Payable			3,100
Total Liabilities			4,000
Stockholders’ Equity
Common Stock		16,150
Retained Earnings		3,150
Total Stockholders’ Equity			19,300
Total Liabilities and Stockholders’ Equity			$23,300

Step 1: Explanation on balance sheet

Balance sheet indicates the balances of assets, liabilities, and owners’ equity for the particular accounting period.

Step 2: Details of balance sheet

In the balance sheet, total current assets equals $4,600, total property, plant and equipment equals $18,700, total current liabilities equals $900, total long term liabilities equals $3,100 and total stockholders’ equity equals $19,300.