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As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. $ 1,209 3,800 (380) 5,269
As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. $ 1,209 3,800 (380) 5,269 2,500 12,400 Henderson Manufacturing Company Balance Sheet At December 31, 2018 ($ in ecos) Assets 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 Franchise Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Note payable Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity 2,160 3,000 15,000 (8,189) $ 6,380 9,000 300 2,100 17,700 - 8,000 300 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 1.6. That is, total liabilities are 160% of total shareholders' equity Retained earnings at the beginning of the year was $4,400. Net income for 2018 was $2,600, and $900 in cash dividends were declared and paid to shareholders. 2. The investments represent treasury bills purchased in December 2018 that mature in January 2019 These are considered cash equivalents. 3. Interest on both the note and the bonds is payable annually. 4. The note payable is due in annual installments of $900 each 5. Deferred revenue will be recognized equally over the next 18 months 6. The common stock represents 500,000 shares of no par stock authorized, 300,000 shares issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.) HENDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 (S in 000s) Assets Current assets Cash and cash equivalents HENDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets Cash and cash equivalents 1
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