The December 31, 2021, post-closing trial balance for Strong Corporation is presented below: Accounts Debit Credit Cash $ 23,300 Accounts receivable 23,100 Prepaid insurance 4,600 Supplies 190,000 Long-Term Investments 52,000 Land 45,000 Buildings 275,000 Accumulated depreciation 86,000 Accounts payable 37,400 Notes payable, due 2022 62,000 Interest payable 12,000 Notes payable, due 2031 129,000 Common stock 180,000 Retained earnings 106,600 Totals $ 613,000 $ 613,000 Prepare a classified balance sheet for Strong Corporation at December 31, 2021.

Answer and Explanation:

The balance sheet is shown below:-

Current assets                           Current liability

Cash               $23,300             Accounts payable      $37,400

Accounts

receivable      $23,100              Notes payable due  

Prepaid                                        2022                         $62,000

Insurance       $4,600                 Interest payable        $12,000

Supplies         $190,000             Total current liabilities            $111,400

Total Current                                Long term liabilities

assets                          $241,000

Long term                                     Notes payable due 2031       $129,000

Investments                 $52,000

Property plants and

equipment

Land                 $45,000                Stockholders Equity

Building            $275,000              Common stock          $180,000

Less: Accumulated                         Retained Earnings     $106,600

Depreciation      $86,000

Property plants and                      Total stockholder equity         $286,600

equipment                     $234,000  

Total assets                   $527,000 Total Liabilities

                                                    and Stockholders’ Equity          $527,000

Therefore the total assets is $527,000  while the total liabilities and stockholder equity is $527,000

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.