Please help with preparing a balance sheet using the following information.
Please refer to attached file for the trial balance as of December 31, 2011.
1. Dividends declared during 2011 totaled $15,000. Only $10,000 of the dividends declared in 2011 have been paid as of December 31, 2011. The unpaid dividends have not been recorded.
2. Operations generated $400,000 of revenue for 2011. Expenses recorded totaled $325,000. Additional adjustments required are as follows:
a. The allowance for doubtful accounts should be adjusted to 10 percent of accounts receivable.
b. Prepaid insurance of $4,000 is the premium paid for insurance coverage for July 1, 2011, through June 30, 2012.
c. Unrecorded depreciation expense for 2011 totals $20,500.
d. Income taxes have not been recorded. Best's average rate is 20 percent.
3. The Long-Term Debt account includes $25,000, which must be paid on June 30, 2012.
Required Task: Prepare a balance sheet according to the USALI format below. (Please refer to attachment again to view format and what is required).© BrainMass Inc. brainmass.com October 2, 2020, 3:47 am ad1c9bdddf
Please refer to the attachment.
Best's Restaurant, trial balance, as of December 31, 2011, is as follows:
Cash $ 2,500
Marketable Securities 5,000
Accounts Receivable 50,000
Allowance for Doubtful Accounts $ 2,500
Food Inventory 7,500
Prepaid Rent 2,500
Prepaid Insurance 4,000
Accumulated Depreciation 50,000
Accounts Payable 7,500
Income Taxes Payable -0-
Accrued Expenses 12,500
Dividends Payable -0-
Long-Term Debt 150,000
The solution prepares a balance sheet for information.