BALANCE SHEET ADJUSTMENT & PREPARATION Presented below is the Balance Sheet of Kinghorn Company for the current year 2022. Current Assets $485,000 Current Liabilities $380,000 Investments $640,000 Long-Term Liabilities $1,000,000 Property, Plant & $1,720,000 Equipment Intangible Assets $305,000 TOTAL $3,150,000 S/Holders' Equity TOTAL $1,770,000 $3,150,000 The following information is presented: 1. The current assets section includes: cash $150,000, accounts receivable $170,000, allowance for doubtful accounts $10,000, inventories $180,000 and unearned revenues $5,000. Inventories are stated at the lower of FIFO cost or market value. 2. The investments section includes; the cash surrender value of a life insurance contract $40,000; investments in common stock, short-term (trading) $80,000 and long-term (available-for-sale) $270,000, and a bond sinking fund $250,000. The cost and fair value of investments in common stock are the same. 3. PPE includes: buildings $1,040,000, accumulated depreciation for building $360,000; equipment $450,000, accumulated depreciation for equipment $180,000; land $500,000; and land held for future use $270,000. 4. Intangible assets include: a patent $165,000; goodwill $100,000; and discount on bonds payable $40,000. 5. Current liabilities include: accounts payable $140,000; notes payable - short-term $80,000 and long-term $120,000; and taxes payable $40,000. 6. Long-term liabilities are composed solely of 7% bonds payable due 2029. 7. Stockholders' equity has: preferred stock, no par value, authorized 200,000 shares, issued 70,000 shares for $450,000; and common stock, $1.00 par value, authorized 400,000 shares, issued 100,000 shares at an average price of $10. In addition, the corporation has retained earnings of $320,000. *In other words, the above Balance Sheet is a mess, and needs adjusting given the information in 1-7 - that's your job :)* Required: Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. [25 points] [Check Figure: Once you have made various adjustments, your Total Assets should equal $3,115,000]