The following balance sheet was prepared for Jared Corporation as of Dec. 31, 2002.

The following additional information relates to the December 31, 2002, balance sheet.

(a) Cash includes \($4,000\) that has been restricted to the purchase of manufacturing equipment (a noncurrent asset).

(b) Investment securities include \($2,750\) of stock that was purchased in order to give the company significant ownership and a seat on the board of directors of a major supplier

(c) Other current assets include a \($4,000\) advance to the president of the company. No due date has been set.

(d) Long-term liabilities include bonds payable of \($10.000.\) Of this amount, \($2,500\) represents bonds scheduled to be redeemed in 2003.

(e) Long-term liabilities also include a \($7,000\) bank loan. On May 15, the loan will become due on demand.

(f) On December 21 , dividends in the amount of \($15,000\) were declared to be paid to shareholders of record on Januarys 25. These dividends have not been reflected in the financial statements.
(g) Cash in the amount of \($19.000\) has been placed in a restricted fund for the redemption of preferred stock in 2003. Both the cash and the stock have been removed from the balance sheet.
(h) Property plant, and equipment includes land costing \($8,000\) that is being held for investment purposes and that is scheduled to be sold in 2003.
Based on the information provided, prepare a corrected balance sheet.

Transcribed Image Text:

Assets Jared Corporation Balance Sheet December 31, 2002 Liabilities and Owners' Equity Current assets: Cash Investment securities Accounts receivable, net. Inventory. Other current assets. Total current assets. Noncurrent assets: Property, plant, and equipment, net. Treasury stock. Other nancurrent assets Total noncurrent assets Total assets Current liabilities: $ 12,500 Accounts payable 8,000 Other current liabilities. 21,350 Total current liabilities 31,000 Long-term liabilities... 14,200 Total liabilities. $ 87,050 $ 64,800 4,500 13,600 $ 82,900 Owners' equity: Common stock Retained earnings Total owners' equity. $169,950 Total liabilities and owners' equity. $ 3,400 2,000 $ 5,400 32,750 $ 38,150 $ 50,000 81,800 $131,800 $169,950