The December 31, 2021, post-closing trial balance for Strong Corporation is presented below: Accounts Debit Credit
Cash $ 23,400
Accounts receivable 23,200
Prepaid insurance 4,300
Supplies 160,000
Long-Term Investments 57,000
Land 46,000
Buildings 278,000
Accumulated depreciation 83,000
Accounts payable 37,200
Notes payable, due 2022 62,000
Interest payable 11,000
Notes payable, due 2031 121,000
Common stock 210,000
Retained earnings 67,700
Totals $ 591,900 $ 591,900

Question Completion:

Prepare a classified balance sheet as of December 31, 2021.

Strong Corporation

STRONG CORPORATION

Classified Balance Sheet

As of December 31, 2021

Assets

Current Assets:

Cash                                    $ 23,400

Accounts receivable              23,200

Prepaid insurance                    4,300

Supplies                                160,000     $210,900

Total current assets                                

Long-Term Investments                          $57,000

Long-term assets:

Land                                       46,000

Buildings                278,000

Acc. depreciation    83,000 195,000   $241,000

Total assets                                          $508,900

Liabilities and Equity

Current liabilities:

Accounts payable                37,200

Notes payable, due 2022  62,000

Interest payable                   11,000     $110,200

Long-term liabilities:

Notes payable, due 2031                   $121,000

Equity:

Common stock                210,000

Retained earnings            67,700    $277,700

Total liabilities and equity               $508,900

Explanation:

a) Data and Analysis:

STRONG CORPORATION

Post-closing Trial Balance

December 31, 2021

Accounts                           Debit        Credit

Cash                              $ 23,400

Accounts receivable        23,200

Prepaid insurance              4,300

Supplies                          160,000

Long-Term Investments  57,000

Land                                 46,000

Buildings                        278,000

Accumulated depreciation              $83,000

Accounts payable                              37,200

Notes payable, due 2022                62,000

Interest payable                                 11,000

Notes payable, due 2031                121,000

Common stock                               210,000

Retained earnings                           67,700

Totals                        $ 591,900 $ 591,900

b) The balance sheet is a summary of the financial position or assets, liabilities, and equity of Strong Corporation as at December 31, 2021.