24-1

Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2014. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2009. The client provides you with the information below.

ALMADEN CORPORATION BALANCE SHEET DECEMBER 31, 2014
Assets	Liabilities
Current assets	$1,887,970	Current liabilities	$966,940
Other assets	5,184,626	Long-term liabilities	1,488,210
	Capital	4,617,446
$7,072,596	$7,072,596

An analysis of current assets discloses the following.
Cash (restricted in the amount of $301,730 for plant expansion)	$572,000
Investments in land	186,650
Accounts receivable less allowance of $30,150	481,280
Inventories (LIFO flow assumption)	648,040
$1,887,970
Other assets include:
Prepaid expenses	$63,670
Plant and equipment less accumulated depreciation of $1,443,400	4,132,900
Cash surrender value of life insurance policy	86,070
Unamortized bond discount	38,246
Notes receivable (short-term)	163,190
Goodwill	253,290
Land	447,260
$5,184,626
Current liabilities include:
Accounts payable	$511,250
Notes payable (due 2017)	157,570
Estimated income taxes payable	147,030
Premium on common stock	151,090
$966,940
Long-term liabilities include:
Unearned revenue	$490,500
Dividends payable (cash)	200,910
8% bonds payable (due May 1, 2019)	796,800
$1,488,210
Capital includes:
Retained earnings	$2,756,446
Capital stock, par value $10; authorized 200,000 shares, 186,100 shares issued	1,861,000
$4,617,446

The supplementary information below is also provided.

1.	On May 1, 2014, the corporation issued at 95.2, $796,800 of bonds to finance plant expansion. The long-term bond agreement provided for the annual payment of interest every May 1. The existing plant was pledged as security for the loan. Use the straight-line method for discount amortization.
2.	The bookkeeper made the following mistakes.
(a)	In 2012, the ending inventory was overstated by $185,020. The ending inventories for 2013 and 2014 were correctly computed.
(b)	In 2014, accrued wages in the amount of $226,730 were omitted from the balance sheet, and these expenses were not charged on the income statement.
(c)	In 2014, a gain of $176,240 (net of tax) on the sale of certain plant assets was credited directly to retained earnings.
3.	A major competitor has introduced a line of products that will compete directly with Almadens primary line, now being produced in a specially designed new plant. Because of manufacturing innovations, the competitors line will be of comparable quality but priced 50% below Almadens line. The competitor announced its new line on January 14, 2015. Almaden indicates that the company will meet the lower prices that are high enough to cover variable manufacturing and selling expenses, but permit recovery of only a portion of fixed costs.
4.	You learned on January 28, 2015, prior to completion of the audit, of heavy damage because of a recent fire to one of Almadens two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail.

Analyze the above information to prepare a corrected balance sheet for Almaden in accordance with proper accounting and reporting principles. Prepare a description of any notes that might need to be prepared. The books are closed and adjustments to income are to be made through retained earnings.(List current assets in order of liquidity. Enter account name only and do not provide descriptive information.)

Analyze the above information to prepare a corrected balance sheet for Almaden in accordance with proper accounting and reporting principles. Prepare a description of any notes that might need to be prepared. The books are closed and adjustments to income are to be made through retained earnings.(List current assets in order of liquidity. Enter account name only and do not provide descriptive information.)

ALMADEN CORPORATION Balance Sheet December 31, 2014
Assets
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue	$
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue	$
AddLess:Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity		$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue	$
AddLess:Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity			$
Liabilities and Stockholders' Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue	$
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity		$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue	$
AddLess:Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Accounts PayableAccounts ReceivableAccumulated DepreciationAllowance for Doubtful AccountsBonds PayableCashCash Restricted for Plant ExpansionCash Surrender Value of Life Insurance PolicyCommon StockDividends PayableGoodwillLandIncome Taxes PayableInterest PayableInventoriesInvestments in LandNotes PayableNotes ReceivablePaid-in Capital in Excess of ParPlant and EquipmentPrepaid ExpensesRetained EarningsSalaries and Wages PayableUnamortized Bond DiscountUnearned Revenue
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity			$

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