Required: Prepare a Classified Balance Sheet for NPS Corporation at December 31, 2019. Show your calculations and provide explanations where necessary.
The following partial
NPS Corporation
Partial Trial Balance
December 31, 2019
Cash $215,000
Investment in Shares (FV-OCI) 245,000
Inventory 1,150,000
Equipment (net) 1,545,000
Building (net) 4,589,000
Current Liabilities 1,900,000
Notes Payable, due in 2022 610,000
Common Shares, 800,000 shares outstanding at Dec 31 3,000,000
Other information:
1. The Cash balance includes a $28,000 bank overdraft from another bank and a 6 month investment of $35,000.
2. The Net Accounts Receivable includes a balance for Allowance for Doubtful Accounts of $55,000. Also, it includes a credit balance in a customer’s account equal to $10,000.
3. Equipment has an
4. Investments in shares (FV through OCI) has a fair value of $262,000 at December 31, 2019. This investment is currently recorded at cost.
5. Current Liabilities includes Accounts Payable of $1,050,000; Notes payable due June 1, 2020 of $500,000 and Dividends Payable of $350,000.
Required: Prepare a Classified Balance Sheet for NPS Corporation at December 31, 2019. Show your calculations and provide explanations where necessary.
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