Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brandt Company Sheet of Balances for Year Ended December 31, 2019 Current assets $ 43,900 Current liabilities $ 67,000 Long-term investments 14,000 Long-term liabilities

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Brandt Company Sheet of Balances for Year Ended December 31, 2019 Current assets $ 43,900 Current liabilities $ 67,000 Long-term investments 14,000 Long-term liabilities 23,700 Property, plant, and equipment 123,500 Contributed capital 17,000 Intangible assets Other assets 7,500 13,600 Unrealized capital 23,100 Total assets $202,500 Retained earnings Total equities 71,700 $202,500 The following information is also available: 1. Current assets include cash, $3,800; accounts receivable, $18,100; notes receivable (maturity date July 1, 2024), $10,000; and land, $12,000. 2. Long-term investments include a $5,000 investment in available-for-sale securities that are expected to be sold in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2022, maturity date. 3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600. 4. Intangible assets include patents that cost $8,000 (and on which $2,300 amortization has accumulated) and treasury stock that cost $1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2020), $2,900; sinking fund for bond retirement, $7,000; and trademarks that cost $3,700 and are not impaired. 6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024), $40,000; and accrued income taxes payable, $7,600. 7. Long-term liabilities include accrued wages, $3,700; and mortgage payable (which is due in five equal annual payments starting December 31, 2020), $20,000. 8. Contributed capital includes common stock ($5 par), $11,000; and preferred stock ($100 par), $6,000. 9. Unrealized capital includes premium on bonds payable, $4,300; additional paid-in capital on preferred stock, $2,400; additional paid-in capital on common stock, $14,700; and accumulated other comprehensive income, $1,700. 10. Retained earnings includes unrestricted retained earnings, $37,000; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and $13,000, respectively.

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

Financial Accounting

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice

10th edition

324645570, 978-0324645576

More Books

Students also viewed these Accounting questions