To prepare a classified statement of financial position for Oriole Bowling Alley as of December 31, 2022, we need to organize the given information into appropriate categories for assets, liabilities, and owner's equity. Here is the step-by-step solution:
Assets:
1. Current Assets (listed in reverse order of liquidity):
- Cash: [tex]$18,540
- Accounts Receivable: $[/tex]14,480
- Prepaid Insurance: [tex]$4,690
Total Current Assets:
\[
18,540 + 14,480 + 4,690 = 37,710
\]
2. Property, Plant, and Equipment (net of accumulated depreciation, listed in order of Land, Buildings, and Equipment):
- Land: $[/tex]70,000
- Buildings: [tex]$128,800 - $[/tex]42,530 (Accumulated Depreciation - Buildings) = [tex]$86,270
- Equipment: $[/tex]61,800 - [tex]$1,590 (Accumulated Depreciation - Equipment) = $[/tex]60,210
Total Property, Plant, and Equipment:
[tex]\[
70,000 + 86,270 + 60,210 = 216,480
\][/tex]
Total Assets:
[tex]\[
37,710 + 216,480 = 254,190
\][/tex]
Liabilities and Owner's Equity:
1. Current Liabilities:
- Accounts Payable: [tex]$12,800
- Interest Payable: $[/tex]14,350
- Current Portion of Notes Payable: [tex]$15,200
Total Current Liabilities:
\[
12,800 + 14,350 + 15,200 = 42,350
\]
2. Long-term Liabilities:
- Notes Payable: $[/tex]187,620 - [tex]$15,200 (Current Portion of Notes Payable) = $[/tex]172,420
Total Liabilities:
[tex]\[
42,350 + 172,420 = 214,770
\][/tex]
3. Owner's Equity:
- Owner's Capital: [tex]$120,590
Total Liabilities and Owner's Equity:
\[
214,770 + 120,590 = 335,360
\]
Since the total liabilities and owner's equity ($[/tex]335,360) do not balance with the total assets ([tex]$254,190), there seems to be some data missing or miscalculated in the provided figures. Please recheck the provided figures for completeness and accuracy.
Anyway, let's represent the available corrected and hypothetically completed figures in a structured statement format:
---
Oriole Bowling Alley
Statement of Financial Position
December 31, 2022
Assets
1. Current Assets:
- Cash: $[/tex]18,540
- Accounts Receivable: [tex]$14,480
- Prepaid Insurance: $[/tex]4,690
Total Current Assets: [tex]$37,710
2. Property, Plant, and Equipment:
- Land: $[/tex]70,000
- Buildings (net): [tex]$86,270
- Equipment (net): $[/tex]60,210
Total Property, Plant, and Equipment: [tex]$216,480
Total Assets: $[/tex]254,190
---
Liabilities and Owner's Equity
1. Current Liabilities:
- Accounts Payable: [tex]$12,800
- Interest Payable: $[/tex]14,350
- Current Portion of Notes Payable: [tex]$15,200
Total Current Liabilities: $[/tex]42,350
2. Long-term Liabilities:
- Notes Payable: [tex]$172,420
Total Liabilities: $[/tex]214,770
3. Owner's Equity:
- Owner's Capital: [tex]$120,590
Total Liabilities and Owner's Equity: $[/tex]335,360
---
Given discrepancies could also mean certain values (like possibly missing revenues) had not factored into the working sheet. Review and ensure inclusion of every relevant data to balance the statement accurately.
