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. adams company balance sheet december 31 assets current assets prepaid rent $8,000 merchandise inventory 16,000 prepaid insurance 5,000 accounts receivable 14,000 cash 36,000 office supplies 4,000 total current assets $83,000 plant assets select account title of depreciable asset from the question data tab total plant assets total assets liabilities current liabilities salaries payable $7,000 accounts payable 20,000 total current liabilities $27,000 long - term liabilities notes payable (due in 9 years) 50,000 mortgages payable (due in 5 years) 32,000 total long - term liabilities 82,000 total liabilities 109,000 equity common stock 30,000 retained earnings 50,000 total equity 80,000 total liabilities and equity $189,000 students: the scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work

adams company reports the following balance sheet accounts as of december 31. required: prepare a classified balance sheet. adams company balance sheet december 31 assets current assets prepaid rent $8,000 merchandise inventory 16,000 prepaid insurance 5,000 accounts receivable 14,000 cash 36,000 office supplies 4,000 total current assets $83,000 plant assets select account title of depreciable asset from the question data tab total plant assets total assets liabilities current liabilities salaries payable $7,000 accounts payable 20,000 total current liabilities $27,000 long - term liabilities notes payable (due in 9 years) 50,000 mortgages payable (due in 5 years) 32,000 total long - term liabilities 82,000 total liabilities 109,000 equity common stock 30,000 retained earnings 50,000 total equity 80,000 total liabilities and equity $189,000 students: the scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work

Answer

Explanation:

Step1: Identify asset sections

Sum up current assets: $8000 + 16000+5000 + 14000+36000 + 4000=$83000$. Since plant - asset values are not fully given in the provided data, assume we only focus on the completed parts for now.

Step2: Identify liability sections

Sum current liabilities: $7000+20000 = $27000$. Sum long - term liabilities: $50000 + 32000=$82000$. Total liabilities are $27000+82000=$109000$.

Step3: Identify equity sections

Sum equity components: $30000 + 50000=$80000$.

Step4: Verify accounting equation

Total liabilities and equity is $109000 + 80000=$189000$.

Answer:

ADAMS COMPANY
Balance Sheet December 31
Assets
Current assets $83000$
Plant assets (incomplete data)
Total assets (incomplete if plant assets not fully accounted)
Liabilities
Current liabilities $27000$
Long - term liabilities $82000$
Total liabilities $109000$
Equity
Common stock $30000$
Retained earnings $50000$
Total equity $80000$
Total liabilities and equity $189000$