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    Simon Company: Balance Sheet Preparation

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    From the following data, prepare a classified balance sheet for Simon Company at December
    31, 2006.

    Accounts payable . . . . . . . . . . . . . . . . . . $ 62,500
    Accounts receivable . . . . . . . . . . . . . . . . . 123,000
    Buildings . . . . . . . . . . . . . . . . . . . . . . . . . 418,500
    Owners' equity, 1/1/06 . . . . . . . . . . . . . . . 210,000
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,750
    Distributions to owners during 2006 . . . . 21,750
    Supplies . . . . . . . . . . . . . . . . . . . . . . . . . 3,750
    Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000
    Mortgage payable . . . . . . . . . . . . . . . . . . 479,500
    Net income for 2006 . . . . . . . . . . . . . . . . 124,750
    Owners' equity, 12/31/06 . . . . . . . . . . . . . ?

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    https://brainmass.com/business/balance-sheet/simon-company-balance-sheet-preparation-165019

    Solution Preview

    See attached Excel

    Simon Company
    Balance Sheet
    31-Dec-06

    ASSETS

    Current Assets
    Cash 179,750
    Accounts receivable 123,000
    Supplies 3,750
    Total current assets 306,500 ...

    Solution Summary

    From the trial balance presented in the problem, the solution shows a balance sheet prepared in good form. Also included is a statement about how the net income for 2006 was computed.

    $2.19

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