16Intermediate Accounting - 4 Award 10.00 points Problems...

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4.Award: 10.00 pointsProblems? Adjust creditfor all students.The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, theend of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventories, $25,000; equipment (net),$80,000; accounts payable, $14,000; wages payable, $9,000; interest payable, $1,000; note payable (duein 18 months), $30,000; common stock, $50,000.Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $140,000.(Amounts to be deducted should be indicated by a minus sign.)$$$$$$K AND J NURSERY, INC.Balance SheetAt December 31, 2016AssetsCurrent assetsCash16,000Accounts receivable11,000Inventories25,000Total current assets52,000Property, plant, and equipmentEquipment140,000Accumulated depreciation(60,000)Net property, plant, and equipment80,000Total assets132,000Liabilities and Shareholders' EquityCurrent liabilitiesAccounts payable14,000Wages payable9,000Interest payable1,000Total current liabilities24,000Long­term liabilitiesNote payable30,000Shareholders' equityCommon stock50,000Retained earnings28,000Total shareholders' equity78,000Total liabilities and shareholders' equity132,000
FinancialStatementsLearning Objective:03­02 Identify anddescribe the variousbalance sheet assetclassifications.Difficulty: 2MediumLearning Objective:03­03 Identify anddescribe the twobalance sheetliabilityclassifications.eBook & ResourcesReferences

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