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As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. Henderson Manufacturing Company Balance Sheet
As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant.
Henderson Manufacturing Company Balance Sheet At December 31, 2018 ($ in 000s) | |||||
Assets | |||||
Current assets: | |||||
Cash | $ | 1,950 | |||
Accounts receivable | 4,450 | ||||
Allowance for uncollectible accounts | (700 | ) | |||
Finished goods inventory | 6,300 | ||||
Prepaid expenses | 4,100 | ||||
Total current assets | 16,100 | ||||
Long-term assets: | |||||
Investments | 3,700 | ||||
Raw materials and work in process inventory | 4,600 | ||||
Equipment | 23,000 | ||||
Accumulated depreciationequipment | (9,700 | ) | |||
Franchise | ? | ||||
Total assets | $ | ? | |||
Liabilities and Shareholders Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 7,900 | |||
Note payable | 15,000 | ||||
Interest payablenote | 400 | ||||
Deferred revenue | 2,700 | ||||
Total current liabilities | 26,000 | ||||
Long-term liabilities: | |||||
Bonds payable | 8,000 | ||||
Interest payablebonds | 200 | ||||
Shareholders equity: | |||||
Common stock | $ | ? | |||
Retained earnings | ? | ? | |||
Total liabilities and shareholders equity | ? | ||||
Additional information ($ in 000s):
- Certain records that included the account balances for the franchise and shareholders equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.5. That is, total liabilities are 150% of total shareholders equity. Retained earnings at the beginning of the year was $3,900. Net income for 2018 was $3,000, and $1,000 in cash dividends were declared and paid to shareholders.
- The investments represent treasury bills purchased in December 2018 that mature in January 2019. These are considered cash equivalents.
- Interest on both the note and the bonds is payable annually.
- The note payable is due in annual installments of $1,500 each.
- Deferred revenue will be recognized equally over the next 18 months.
- The common stock represents 500,000 shares of no par stock authorized, 300,000 shares issued and outstanding.
Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.)
HENDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) 01 lelo
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