Exercise 25 Your answer is partially correct Try again These

Exercise 2-5 Your answer is partially correct. Try again. These items are taken from the financial statements of Swifty n at December 31, 2017 $86,756 10,332 2,624 9,709 67,568 50,184 Prepaid insurance Equipment Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2017) Accumulated depreciation- buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue 4,346 2,132 49,200 32,801 37,392 7,790 76,752 15,350 2,952 12,054 Prepare a classified balance sheet. Assume that $11,152 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.) Swifty Corporation Balance Sheet December 31, 201 urrent As ccounts Receivab 033 62 otal Current A

Solution

Income Statement Service Revenue 12054 Less Expense Insreance Expense 640 Depreciation Expenses 4346 Interest Expenses 2132 Total Expenses 7118 Net Income 4936 Statement of Retained Earnings Ratained Earnnings at the Beginning 32801 Add Net Income 4936 Ratained Earnnings at December 31 2017 37737 Swifty Corporation Balance Sheet December 31,2017 Current Assets Cash 9709 Account Receivable 10332 Prepaid Insurance 2624 Total Current Asset 22665 Property Plant and Equipment Land 50184 Buildings 86756 Less Accumulated Depreciation 37392 49364 Buildings 67568 Less Accumulated Depreciation 15350 52218 151766 Total Assets 174431 Liabilities and Stockholders Equity Current Liabilities Account Payable 7790 Interest Payable 2952 Notes Payable 11152 Total Current Liabilities 21894 Long term Liabilities Note Payable 76752-11152 65600 Total Liabilities 87494 Shareholder Equities Common Stock 49200 Retained Earnings 37737 Total Stockholder Equity 86937 Total Liabilities and Stockholder Equities 174431