Blue Spruce Corp.'s balance sheet at December 31, 2021, is presented below. BLUE SPRUCE CORP. Balance Sheet December 31, 2021 Cash Accounts receivable $14,760 Accounts payable $15,360 27,300 Common stock ($10 par) 48,000 Allowance for doubtful accounts (900) Retained earnings 76,440 Supplies 2,640 Land 24,000 Buildings 85,200 Accumulated depreciation-buildings (13,200 ) $139,800 $139,800 During 2022, the following transactions occurred. 1. On January 1, Blue issued 720 shares of $40 par, 7% preferred stock for $29,520. 2. On January 1, Blue also issued 540 shares of the $10 par value common stock for $12,600. 3. Blue performed services for $192,000 on account. 4. On April 1, 2022, Blue collected fees of $21,600 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Blue collected $165,600 from customers on account. 6. Blue bought $21,060 of supplies on account. 7. Blue paid $19,320 on accounts payable. 8. Blue reacquired 240 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $112,920. 10. On December 31, 2022, Blue declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $1,020 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $3,540 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $2,100 at year end. 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $6,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare a classified balance sheet as of December 31, 2022. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) Current Assets Cash Accounts Receivable Less Common Stock Allowance for Doubtful Accounts Total Current Assets Property, Plant and Equipment Land Buildings Total Assets Current Llabilities Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Dividends Payable Other Operating Expenses Total Current Liabilities Stockholders' Equity Stockholders' Equity Total Pald-In Capital and Retained Earnings Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity BLUE SPRUCE CORP. Balance Sheet At December 31, 2022 Assets $ Liabilities and Stockholders' Equity $ $ $

Blue Spruce Corp.'s balance sheet at December 31, 2021, is presented below. BLUE SPRUCE CORP. Balance Sheet December 31, 2021 Cash Accounts receivable $14,760 Accounts payable $15,360 27,300 Common stock ($10 par) 48,000 Allowance for doubtful accounts (900) Retained earnings 76,440 Supplies 2,640 Land 24,000 Buildings 85,200 Accumulated depreciation-buildings (13,200 ) $139,800 $139,800 During 2022, the following transactions occurred. 1. On January 1, Blue issued 720 shares of $40 par, 7% preferred stock for $29,520. 2. On January 1, Blue also issued 540 shares of the $10 par value common stock for $12,600. 3. Blue performed services for $192,000 on account. 4. On April 1, 2022, Blue collected fees of $21,600 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Blue collected $165,600 from customers on account. 6. Blue bought $21,060 of supplies on account. 7. Blue paid $19,320 on accounts payable. 8. Blue reacquired 240 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $112,920. 10. On December 31, 2022, Blue declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $1,020 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $3,540 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $2,100 at year end. 4. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $6,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare a classified balance sheet as of December 31, 2022. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) Current Assets Cash Accounts Receivable Less Common Stock Allowance for Doubtful Accounts Total Current Assets Property, Plant and Equipment Land Buildings Total Assets Current Llabilities Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Dividends Payable Other Operating Expenses Total Current Liabilities Stockholders' Equity Stockholders' Equity Total Pald-In Capital and Retained Earnings Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity BLUE SPRUCE CORP. Balance Sheet At December 31, 2022 Assets $ Liabilities and Stockholders' Equity $ $ $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 8E: Balance Sheet Calculations Dawson Companys balance sheet information at the end of 2019 and 2020 is...

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