22. (10 points).

The Rose Company has the following account balances as of September 30, 2003:

ACCOUNT BALANC
Accounts payable E
$ 8,000
Accounts $ 6,000
receivable
Bonds payable $ 30,000
Buildings $ 50,000
Capital stock $ 50,000
Cash $ 12,000
Cost of goods sold $ 20,000
Inventory $ 7,500
Land $ 25,000
Retained earnings ?
Sales $ 45,000
Wage expense $ 10,000

REQUIRED: Prepare the classified balance sheet for the Rose Company (in good form).

ANSWER:

The Rose Company

Balance Sheet

September 30, 2003

Curent Assets:
DFGFW
Cash $12,00
Accts Receivable 0
6,000
Inventory 7,500
Total Current Assets $25,500
Long-term assets
Buildings 50,000
Land 25,000 75,000
Total Assets $100,50
Current Liabilities 0
Acct Payable 8,000
Long-term Liab
Bonds Payble 30,000
Total Liab 38,000
Owner's Equity
Capital stock 50,000
Retained earnings 12,500 62,500
Total Liab & O/E $100,50
0