Problem 5 The balance sheet account balances of the Damitio

Problem 5 The balance sheet account balances of the Damitio Inn at the end of 20X3 are as follows: Cash Accounts receivable Allowance for doubtful accounts Food inventory Prepaid insurance Investments (long-term) Land Building Equipment Accumulated depreciation-building Accumulated depreciation-equipment Deferred income taxes, current assets Organization costs (unamortized) Accounts payable Wages payable Income taxes payable Current maturities of long-term debt Long-term debt Deferred income taxes (long-term liability) Common stock Paid-in capital in excess of par Retained earnings $10,000 150,000 10,000 50,000 12,000 100,000 300,000 14,000,000 800,000 2,500,000 200,000 50,000 50,000 50,000 20,000 30,000 80,000 9,920,000 150,000 500,000 1,000,000 1,062,000 Required: Prepare the balance sheet in accordance with the USALI.

Solution

Damitio Inn Balance Sheet For the Year Ended Dec 31, 20X3 Assets Current Assets Cash            10,000.00 Accounts Receivable          150,000.00 Allowance for Doubtful Accounts          (10,000.00)          140,000.00 Food Inventory            50,000.00 Prepaid Insurance            12,000.00 Total Current Assets          212,000.00 Non Current Receivables Investments          100,000.00 Property and Equipment Land          300,000.00 Building    14,000,000.00 Accumulated Depreciation - Building    (2,500,000.00)    11,500,000.00 Equipment          800,000.00 Accumulated Depreciation - Equipment        (200,000.00)          600,000.00 Total Property And equipment    12,400,000.00 Other Assets Deferred Income Taxes            50,000.00 Organization Costs            50,000.00 Total Other Assets          100,000.00 Total Assets    12,812,000.00 Liabilities & Stockholders\' Equity Liabilities Current Liabilities Accounts Payable            50,000.00 Wages Payable            20,000.00 Income Taxes Payable            30,000.00 Current Maturities of Long term debt            80,000.00 Total Current liabilities          180,000.00 Long Term Debt Net of Current Maturities      9,920,000.00 Other Long Term Liabilities Deferred Income Taxes          150,000.00 Total Liabilities    10,250,000.00 Shareholders\' Equity Common Stock          500,000.00 Paid-in Capital in Excess of Par      1,000,000.00 Total Paid-in Capital      1,500,000.00 Retained Earnings      1,062,000.00 Total Shareholders\' Equity      2,562,000.00 Total Liabilities & Shareholders\' Equity    12,812,000.00