Fresh Food Distribution Inc. is a corporation engaged in the food industry that its headquarters in
Nashville Tennessee. The following trial balance includes the accounts balances at year end as of June 30,
2024.
Fresh Food Distribution Inc.
Trial Balance
June 30. 2024
Db
Cr
Cash
S
77,000
S
Accounts receivable
120,000
Allowance for doubtful accounts
8,000
Loan receivable to employees
40,000
Inventory
215,000
Short term equity securities
182,000
Prepaid expenses
16,000
Land
280,000
Building
1,550,000
Accumulated Depreciation Building
620,000
Equipment
637,000
Accumulated Depreciation Building
210,000
Investments
37,000
Copy right
40,000
Franchise
152,000
Notes receivable
250,000
Interest receiavble
12,000
Accounts payable
196,000
Dividends payable
Interest payable
Income tax payable
Unearned revenues
12,000
16,000
40,000
60,000
Notes payable
300,000
Common stock
1,500,000
Additional Paid in Capital
500,000
Retained earnings
146,000
$ 3,608,000 $ 3,608,000
Additional information for year end June 30, 2024, for Fresh Food Distribution Inc.
1. Cash account includes $17,000 restricted for special project.
2. Prepaid expenses of $16,000 due on November 30, 2024.
3. Loan receivable from employees due on December 31, 2024.
4. Short-term equity securities consist of securities that the Company plans to sell in the year 2024-
2025 and $50,000 in treasury bill purchase in June 15 of current year that mature in August 15,
2024.
5. Notes receivable due in installments of $50,000, payable on each March 31. Interest is payable
annually.
6. Investments consist of equity securities that the Company does not plan to sell in the next year.
7. Dividends are payable on July 16, 2024.
8. Unearned revenue represents payments from customers. Seventy five percent due in the fiscal
year 2024-2025 and the remainder in the fiscal year 2025-2026.
9. Notes payable consist of a note of $300,000 that is due on June 30, 2034, an annual installment of
$30,000 plus interest at 6.50%.
10. Common stock $1 par value; 2,000,000 shares authorized with 1,500,000 shares issued and
outstanding.
Required
1. Prepare a classified balance sheet for Fresh Food Distribution Inc at June 30. 2024.
2. Identify those items of the balance sheet that require disclosure as significant accounting policies.
3. Show those items of the balance sheet that require additional disclosure, either on the face of the
balance sheet or in the notes of the financial statements.
