ACC 2010 Comprehensive Problem #1

(Assessment)

Balance Sheet, Schedules and Notes: The following is an alphabetical listing of Leffler Rocks balance sheet accounts and account balances on December 31, 2016:

Accounts Payable	$54,200	Income Taxes Payable	$19,700
Accounts Receivable	37,100	Inventory	85,300
Accumulated Depreciation	109,300	Investment in Affiliate	30,000
Additional Paid-in Capital on Common Stock	20,000	Long-Term Liabilities (book value)	91,000
Additional Paid-in Capital on Preferred Stock	3,200	Miscellaneous Current Payables	6,800
Allowance for Doubtful Accounts	1,600	Notes Receivable	17,000
Bond Sinking Fund	12,500	Preferred Stock	32,000
Cash	23,800	Property, Plant, Equipment	296,700
Common Stock	80,000	Retained Earnings	84,600

Additional information:

The company reports on the balance sheet the net book value of property and equipment and long-term liabilities (known as control accounts). The related details are disclosed in the notes.

The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, $39,500; buildings, $264,600; store fixtures, $72,600; and office equipment, $30,000.

The accumulated depreciation breakdown is as follows: buildings, $54,600; store fixtures, $37,400; and office equipment, $17,300.

The long-term debt includes 12%, $36,000 face value bonds that mature on December 31, 2021, and have an unamortized bond discount of $2,000; 11%, $48,000 face value bonds that mature on December 31, 2022, have a premium on bonds payable of $1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of $6,200 and matures on January 1, 2019.

The non-interest-bearing note receivable matures on June 1, 2017.

Inventory is listed at lower of cost or market; cost is determined on the basis of average cost.

The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%, $50,000, 15-year bonds issued by this affiliate, Jay Company.

Common stock has a $10 par value per share, 10,000 shares are authorized, and 1,000 shares were issued during 2016 at a price of $13 per share, resulting in 8,000 shares issued at year-end.

Preferred stock has a $50 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2016 at a price of $55 per share, resulting in 640 shares issued at year-end.

On January 15, 2017, before the December 31, 2016 balance sheet was issued, a building with a cost of $20,000 and a book value of $7,000 was totally destroyed. Insurance proceeds will amount to only $5,000.

Net income and dividends declared and paid during the year were $50,500 and $21,000 respectively.

Required:

Prepare Leffler Rocks December 31, 2016 balance sheet (including appropriate parenthetical notations).

Prepare a statement of shareholders equity for 2016. (Hint: Work back from the ending account balances.)

		LEFFLER ROCKS
		Balance Sheet
		31-Dec-16
	Assets
Current Assets:
Cash		$ 23,800
Total current assets
Long-Term Investments:
Total long-term investments
Total Property, plant, and equipment
Total Assets
	Liabilities
Current Liabilities
Total current liabilities
Long-term liabilities
Total Liabilities
	Stockholders' Equity
Contributed Capital:
Additional paid-in capital on:
Total contributed capital
Retained earnings
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity

LEFFLER ROCKS

Statement of Shareholders Equity

For Year Ended December 31, 2016

Preferred Stock, $50 par

Common Stock, $10 par

Additional Paid-in Capital on Preferred Stock

Additional Paid-in Capital on Common Stock

Retained Earnings

Total

Balances, 1/1/16*

Common Stock Issued

Preferred Stock Issued

Net income

Dividends paid

Balances, 12/31/16

$ 32,000

$ 80,000

$ 3,200

$ 20,000

$ 84,600

$ 219,800

*Each of the beginning balances must be derived by taking the ending balances as given and adjusting for the transactions that occurred during the year affecting each respective account.

I need help with this one.I posted the 2 templates that are need for the assigments.Thank you.