adams company reports the following balance sheet accounts as of december 31. required: prepare a classified…

adams company reports the following balance sheet accounts as of december 31. required: prepare a classified balance sheet. (click on the graded worksheet tab below.) salaries payable $7,000 buildings 71,000 prepaid rent 8,000 merchandise inventory 16,000 accounts payable 20,000 prepaid insurance 5,000 accounts receivable 14,000 common stock 30,000 retained earnings 50,000 notes payable (due in 9 years) 50,000 office supplies 4,000 land 42,000 accumulated depreciation—building 7,000 mortgages payable (due in 5 years) 32,000 cash 36,000 students: the scratchpad area is for you to do any additional work you need to solve this question or can be used to show nothing in this area will be graded, but it will be submitted with your assignment.

adams company reports the following balance sheet accounts as of december 31. required: prepare a classified balance sheet. (click on the graded worksheet tab below.) salaries payable $7,000 buildings 71,000 prepaid rent 8,000 merchandise inventory 16,000 accounts payable 20,000 prepaid insurance 5,000 accounts receivable 14,000 common stock 30,000 retained earnings 50,000 notes payable (due in 9 years) 50,000 office supplies 4,000 land 42,000 accumulated depreciation—building 7,000 mortgages payable (due in 5 years) 32,000 cash 36,000 students: the scratchpad area is for you to do any additional work you need to solve this question or can be used to show nothing in this area will be graded, but it will be submitted with your assignment.

Answer

Explanation:

Step1: Classify assets as current or non - current

Current assets include cash ($36,000), accounts receivable ($14,000), merchandise inventory ($16,000), prepaid rent ($8,000), prepaid insurance ($5,000), and office supplies ($4,000). Non - current assets are buildings ($71,000 - $7,000 = $64,000 after accumulated depreciation) and land ($42,000). Current Assets Total = $36,000 + $14,000+ $16,000 + $8,000 + $5,000 + $4,000=$83,000 Non - Current Assets Total = $64,000 + $42,000 = $106,000 Total Assets = $83,000 + $106,000=$189,000

Step2: Classify liabilities as current or non - current

Current liabilities are salaries payable ($7,000) and accounts payable ($20,000). Non - current liabilities are notes payable ($50,000) and mortgages payable ($32,000). Current Liabilities Total = $7,000 + $20,000=$27,000 Non - Current Liabilities Total = $50,000 + $32,000 = $82,000 Total Liabilities = $27,000 + $82,000=$109,000

Step3: Calculate stockholders' equity

Stockholders' equity = Common stock ($30,000)+ Retained earnings ($50,000) = $80,000 And Total Liabilities + Stockholders' Equity = $109,000 + $80,000 = $189,000 which equals total assets.

Answer:

Classification Amount
Current Assets $83,000
Non - Current Assets $106,000
Total Assets $189,000
Current Liabilities $27,000
Non - Current Liabilities $82,000
Total Liabilities $109,000
Stockholders' Equity $80,000
Total Liabilities and Stockholders' Equity $189,000