Chapter 1-16 - CHAPTER 3 THE BALANCE SHEET AND FINANCIAL DISCLOSURES Brief Exercise 35 BE 35 The following is a post-closing trial balance for Culver

Chapter 1-16 - CHAPTER 3 THE BALANCE SHEET AND FINANCIAL...

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CHAPTER 3 THE BALANCE SHEET AND FINANCIAL DISCLOSURES Brief Exercise 3–5 BE 3–5 Balance sheet classification LO3–2, LO3–3 The following is a December 31, 2016, post-closing trial balance for Culver City Lighting, Inc. Prepare a classified balance sheet for the company. Account Title Debits Credits Cash 55,000 Accounts receivable 39,000 Inventories 45,000 Prepaid insurance 15,000 Equipment 100,000 Accumulated depreciation—equipment 34,000 Patent, net 40,000 Accounts payable 12,000 Interest payable 2,000 Note payable (due in 10, equal annual installments) 100,000
Common stock 70,000 Retained earnings 76,000 Totals 294,000 294,000 CULVER CITY LIGHTING, INC. Balance Sheet At December 31, 2013 Assets Current assets: Cash .................................................................... $ 55,000 Accounts receivable ........................................... 39,000 Inventories .......................................................... 45,000 Prepaid insurance ............................................... 15 ,000 Total current assets ........................................ 154,000 Property, plant, and equipment: Equipment .......................................................... $100,000 Less: Accumulated depreciation ........................ (34 ,000) Net property, plant, and equipment ............... 66,000 Intangible assets: Patent ............................................................... 40 ,000 Total assets ................................................. $260 ,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable ............................................... $ 12,000 Interest payable ................................................... 2,000

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