Balance Sheet Schedules
In its annual report to stockholders, Crantz Inc. presents a condensed balance sheet with detailed data provided in supplementary schedules.
1. From the adjusted trial balance of Crantz, prepare the following sections of the balance sheet, properly classifying all accounts as to balance sheet categories:
(a) Current assets
(b) Property, plant, and equipment
(c) Intangible assets
(d) Total assets
(e) Current liabilities
(f) Noncurrent liabilities
(g) Owners’ equity
(h) Total liabilities and owners’ equity
2. Compute the current ratio and debt ratio for Crantz.
Crantz Inc. |
||
Adjusted Trial Balance |
||
December 31, 2008 |
||
|
Debit |
Credit |
Cash |
$ 33,900 |
|
Investment securities (trading) |
20,000 |
|
Notes receivable—trade debtors |
18,000 |
|
Accrued interest on notes receivable |
1,800 |
|
Accounts receivable |
88,400 |
|
Allowance for doubtful accounts |
|
$ 4,300 |
Inventory |
56,900 |
|
Prepaid expenses |
6,100 |
|
Accounts payable |
|
31,500 |
Notes payable—trade creditors |
|
16,000 |
Accrued interest on notes payable |
|
800 |
Land |
80,000 |
|
Buildings |
170,000 |
|
Accumulated depreciation—buildings |
|
34,000 |
Equipment |
48,000 |
|
Accumulated depreciation—equipment |
|
7,600 |
Patents |
15,000 |
|
Franchises |
10,000 |
|
Bonds payable, 8%—issue 1 (mature 12/31/10) |
|
50,000 |
Bonds payable, 12%—issue 2 (mature 12/31/14) |
|
100,000 |
Accrued interest on bonds payable |
|
8,000 |
Premium on bonds payable—issue 1 |
|
1,500 |
Discount on bonds payable—issue 2 |
10,500 |
|
Mortgage payable |
|
57,500 |
Accrued interest on mortgage payable |
|
2,160 |
Capital stock, par value $1; 10,000 shares authorized; |
|
|
4,000 shares issued |
|
4,000 |
Additional paid-in capital |
|
112,800 |
Retained earnings |
|
139,440 |
Treasury stock—at cost (500 shares) |
11,000 |
|
|
$569,600 |
$569,600 |