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    Preparing a Balance Sheet

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    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.

    Additional Information:
    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).

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    Solution Preview

    Please refer to the attachment.

    Best's Restaurant, trial balance, as of December 31, 2011, is as follows:

    Debits Credits
    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
    Investments 25,000
    Land 40,000
    Building 210,000

    Equipment 50,000
    Accumulated Depreciation 50,000
    Accounts Payable 7,500
    Income Taxes Payable -0-
    Accrued Expenses 12,500

    Dividends Payable -0-
    Long-Term Debt 150,000
    Capital ...

    Solution Summary

    The solution prepares a balance sheet for information.