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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 . . . . . . . . . . . . . ?

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