Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant Henderson Manufacturing Company Current assets:

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant Henderson Manufacturing Company Current assets: Cash Accounts receivable Balance Sheet At December 31, 2021 ($ in 000s) Assets Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment $ 1,450 3,950 (see) 5,300 3,600 13,500 3,200 4,100 20,500 (9,200) Franchise Total assets $ ? Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 7,400 Notes payable 10,000) Interest payable-note Deferred revenue 200 3,600 Saved Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment $ 1,450 3,950 (800) 5,300 3,600 13,500 3,200 4,100 20,500 (9,200) 3 Franchise ? Total assets $ ? Liabilities and Shareholders' Equity Current liabilities: Accounts payable 4 Notes payable $ 7,400 10,000 Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Interest payable-bonds Bonds payable Shareholders' equity: 200 3,600 21,200 9,000 600 Common stock $? Retained earnings ? Total liabilities and shareholders' equity ? Additional information ($ in 000s): 1. 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 1.4. That is, total liabilities are 140% of total shareholders' equity. Retained earnings at the beginning of the year was $3,400. Net income for 2021 was $2,500, and $1,200 in cash dividends were declared and paid to shareholders. 2. The investments represent treasury bills purchased in December 2021 that mature in January 2022. These are considered cash equivalents. 3. Interest on both the notes and the bonds is payable annually. 4. The notes payable account contains one note that is due in annual installments of $1,000 for each payment due. 5. Deferred revenue will be recognized equally over the next 18 months. 6. The common stock represents 500,000 shares of no par stock authorized, of which 300,000 shares are issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.) Current assets: Inventory: Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 000s) Assets Total current assets Property, plant, and equipment: Net property, plant, and equipment Intangibles: +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper

2nd canadian edition

133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071

More Books

Students also viewed these Accounting questions