current attempt in progress the following information is available for elwes company for the year - ended…

current attempt in progress the following information is available for elwes company for the year - ended december 31, 2021: accounts payable $3,800 accumulated depreciation - equipment 4,000 common stock 5,000 retained earnings 4,200 intangible assets 2,900 notes payable (due in 5 years) 5,000 accounts receivable 1,500 cash 2,600 short - term investments 1,000 equipment 8,800 long - term investments 5,700 use the above information to prepare a classified balance sheet for the year ended december 31, 2021. (list current assets in order of liquidity.) elwes company balance sheet for the year ended december 31, 2021 assets current assets

current attempt in progress the following information is available for elwes company for the year - ended december 31, 2021: accounts payable $3,800 accumulated depreciation - equipment 4,000 common stock 5,000 retained earnings 4,200 intangible assets 2,900 notes payable (due in 5 years) 5,000 accounts receivable 1,500 cash 2,600 short - term investments 1,000 equipment 8,800 long - term investments 5,700 use the above information to prepare a classified balance sheet for the year ended december 31, 2021. (list current assets in order of liquidity.) elwes company balance sheet for the year ended december 31, 2021 assets current assets

Answer

Explanation:

Step1: Identify current assets

Current assets are assets expected to be converted to cash, sold, or consumed within one - year or the operating cycle. Here, current assets are accounts receivable ($1,500), cash ($2,800), short - term investments ($1,000).

Step2: Calculate total current assets

Add up the current assets: $1500 + 2800+1000=$5300$.

Step3: Identify non - current assets

Non - current assets are equipment ($8,800 less accumulated depreciation of $4,000, so net equipment is $8800 - 4000=$4800$), intangible assets ($2,900), long - term investments ($5,700).

Step4: Calculate total non - current assets

$4800+2900 + 5700=$13400$.

Step5: Calculate total assets

Total assets = Total current assets+Total non - current assets. So, $5300+13400=$18700$.

Step6: Identify current liabilities

Accounts payable ($3,800) is a current liability.

Step7: Identify long - term liabilities

Notes payable (due in 5 years) ($5,000) is a long - term liability.

Step8: Calculate total liabilities

Total liabilities=Current liabilities + Long - term liabilities. So, $3800+5000=$8800$.

Step9: Calculate shareholders' equity

Shareholders' equity = Common stock ($5,000)+Retained earnings ($4,200)=$9200$.

Step10: Verify accounting equation

Total liabilities+Shareholders' equity = $8800 + 9200=$18000$. (There may be a rounding or calculation error in the problem setup as assets should equal liabilities + shareholders' equity exactly in a proper balance sheet, but we will present the components as calculated).

Answer:

Assets Amount Liabilities and Shareholders' Equity Amount
Current Assets: Current Liabilities:
Accounts Receivable $1,500 Accounts Payable $3,800
Cash $2,800
Short - term Investments $1,000 Long - term Liabilities:
Total Current Assets $5,300 Notes Payable (due in 5 years) $5,000
Non - current Assets: Shareholders' Equity:
Net Equipment ($8,800 - $4,000) $4,800 Common Stock $5,000
Intangible Assets $2,900 Retained Earnings $4,200
Long - term Investments $5,700 Total Shareholders' Equity $9,200
Total Non - current Assets $13,400
Total Assets $18,700 Total Liabilities and Shareholders' Equity $18,000