Section 276. Form Of Balance Sheet
Description
This section is from the book "Real Estate Accounts", by Walter Mucklow. Also available from Amazon: Real Estate Accounts.
Section 276. Form Of Balance Sheet
The balance sheet of the Alpha Land Company is shown on the following pages. This is given complete, but is followed by the same balance sheet in condensed form.
THE ALPHA BALANCE SHEET
Assets | Sch. | |||
Real Estate, at cost..................... | A | $779,356.89 | ||
Less Options Granted....... | 5,200.00 | $774,156.89 | ||
Mortgages Receivable, Principal | B | $45,000.00 | ||
Mortage Expenses...................... | B | $548.50 | ||
" Insurance..................... | B | 28375 | ||
" Interest ............ | B | 1,178.10 | ||
" Taxes........................... | B | 308.15 | 2,318.50 | |
Total, Good Mortgages Rcceivable......................................... | $47,318.50 | |||
Mortgages in Settlement....... | $5,250.00 | |||
Less Mortgage Deficiency Account...................... | 2,000.00 | 3,250.00 | ||
Contracts Outstanding.................. | C | 568,433.33 | ||
Total Time Sales Outstanding, Net ........................ | 619,001.83 | |||
Bills Receivable................... | D | $1,175.00 | ||
Sundry Debtors........................ | E | 1,477.00 | 2,652.00 | |
Automobiles..................... | $738.02 | |||
Office Furniture................ | 2,720.00 | |||
" Fixtures.................. | 2,682.60 | 6,140.62 | ||
Sundries: | ||||
Suspense Account................... | $750.00 | |||
Handbook................... | 98500 | . 1,735.00 | ||
Cash: | ||||
Petty Cash.................. | $75.00 | |||
Deposited with Bankers............... | F | 8,110.40 | 8,185.40 | |
$1,411,871.74 |
LAND COMPANY DECEMBER 31, 1916
Liabilities | Sch | |||
Capital Stock Issued.................. | $305,000.00 | |||
(Authorized $500,000) | ||||
Less Treasury Stock................ | 22,000.00 | $283,000.00 | ||
$210,418.52 | ||||
Mortgages Payable, Principal.. | G | 257,422.30 | ||
Interest .. | 120.00 | |||
Contracts Payable - unpaid purchase money on properties included in Real Estate Account | H | 8,002.40 | ||
Total "Real Estate" Liabilities.. | $475,96322 | |||
Bills Payable............. | J | $81,340.00 | ||
Sundry Creditors.............. | K | 695.71 | ||
Unpaid Dividends........... | 520.00 | |||
Accounts Payable............................ | 3,420.00 | |||
Total Current Liabilities....... | 85,975.71 | |||
Purchase Contingent Liability due only on completion of sales included in Time Sales | ||||
Eureka Gardens..................... | $.,195-00 | |||
Fairmount................. | 1,200.00 | |||
Parkville............... | 3,950.00 | |||
Rinders, T............................... | 525.33 | |||
Torbay Heights............................... | 4,450.00 | 11,320.33 | ||
Total Liabilities, other than Capital Stock................ | 573,25926 | |||
Total Liabilities........................... | $856,259.26 | |||
Reserve and Undivided Profits: | ||||
Uncompleted Bldgs., Brown. | $32500 | |||
Commissions, Ladore............ | 1,580.00 | |||
Expenses, Ladore........... | 2,500.00 | |||
South Bay............................. | 72,000.00 | $76,405.00 | ||
Reserve Profits.......................... | L | $361,790.37 | ||
Less due Kingslake owner... | 11,000.00 | 350,790.37 | ||
Profit and Loss Account, balance brought forward............... | $75,405.10 | |||
Profits for the period.................... | M | 53,012.01 | 128,417.11 | |
Total Reserve and Undivided Profits ..................... | 555,612.48 | |||
$1,411,871.74 |
The Alpha Land Company Condensed Balance Sheet - December 31, 1916
Assets | Liabilities | ||
Real Estate Unsold.... | $774,156.89 | Capital Stock Outstanding ................. | $283,000.00 |
Mortgages and Contracts................... | 619,001.83 | ||
Mortgages and Contracts Payable............... | 475,963.22 | ||
Bills Receivable................. | 1,175.00 | ||
Equipment................. | 6,140.62 | Bills Payable.......... | 81,340.00 |
Sundry Debtors, etc---- | 3,212.00 | Sundry Creditors............ | 4.II5.7I |
Cash.............................. | 8,185.40 | Purchases (Contingent Liability)........................ | 11,320.33 |
Dividends Unpaid.......... | 520.00 | ||
Total Liabilities............. | $856,259.26 | ||
Reserve, Fees, Improvements and Taxes.... | 76,405.00 | ||
Profits in Reserve..... | 350,790.37 | ||
Profit & Loss and Undivided Profits.............. | 128,417.11 | ||
$1,411,871.74 | $1,411,871.74 | ||
It has been said above that a balance sheet is not strictly a collection of ledger balances, and several examples of the fact are found in the form on pages 278, 279. For example, the first item of "Real Estate" is reduced by the sum received for options, which must be treated as purchase money until the options expire. Other instances appear in "Mortgages in Settlement" and "Capital Stock"; and in each case it will be seen that a clearer statement is obtained by the methods followed than if the various items had been placed separately. It will also be seen that the sub-totals of the balance sheet show clearly on the one side the total real estate owned and the total unpaid balances on all time sales; while, on the other side, they show the capital stock liability, the current, the contingent, and the total liabilities.
Continue to:
My Books
