Question

During the month of July, the company had the following activities: Issued 4,500 shares of common stock for $450,000 cash. Borrowed $38,500 cash from a local bank, payable in two years. Bought a building for $201,500; paid $53,500 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $247,000. Purchased supplies for $10,600 on account. Prepare a classified balance sheet at July 31.

Answer 1

classified balance sheet at July 31.

Assets

Non-Current Assets

Building $201,500

Equipment $247,000

Total Non-Current Assets $448,500

Current Assets

Supplies $10,600

Cash ($450,000 + $38,500 - $53,500 - $247,000) $188,000

Total Current Assets $198,600

Total Assets $647,100

Equity and Liabilities

Equity

Common Stock $450,000

Total Equity $450,000

Liabilities

Current Liabilities

Account Payable $10,600

Total Non Current Liabilities $10,600

Non-Current Liabilities

Note Payable ($38,500 + $148,000) $186,500

Total Non Current Liabilities $186,500

Total Liabilities $197,100

Total Equity and Liabilities $647,100

Step-by-step explanation:

A Balance Sheet is a Financial Statement report that shows the Assets, Liability and Equity balances as at the end of the Reporting period.