Question

Refer to the data in Short Exercise S4-1. Prepare Dalton’s classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form.

Short answer

DALTON HAIR STYLISTS
Balance Sheet
December 31, 2018
Assets
Current Assets:
Cash		$1,300
Office Supplies		1,800
Accounts Receivable		1,500
Total Current Assets			$4,600
Property, Plant, and Equipment:
Equipment	20,900
Less: Accumulated Depreciation- Equipment	(2,200)
Total Property, Plant, and Equipment:			18,700
Total Assets			$23,300
Liabilities
Current Liabilities:
Accounts Payable		$400
Interest Payable		500
Total Current Liabilities:			$900
Long-term Liabilities:
Notes Payable			3,100
Total Liabilities			4,000
Stockholders’ Equity
Common Stock		16,150
Retained Earnings		3,150
Total Stockholders’ Equity			19,300
Total Liabilities and Stockholders’ Equity			$23,300

Step-by-step solution

Explanation on balance sheet                            

Balance sheet indicates the balances of assets, liabilities, and owners’ equity for the particular accounting period.

Details of balance sheet

In the balance sheet, total current assets equals $4,600, total property, plant and equipment equals $18,700, total current liabilities equals $900, total long term liabilities equals $3,100 and total stockholders’ equity equals $19,300.