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).
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.