Complex Balance Sheet

Presented below is the unaudited balance sheet as of December 31, 2016, prepared by Zeus Manufacturing Corporations bookkeeper.

Zeus Manufacturing Corporation Balance Sheet for the Year Ended December 31, 2016
Assets			Liabilities and Shareholders' Equity
Cash	$225,000		Accounts payable	$133,800
Accounts receivable (net)	345,700		Mortgage payable	900,000
Inventories	560,000		Notes payable	500,000
Prepaid income taxes	40,000		Lawsuit liability	80,000
Investments	57,700		Income taxes payable	61,200
Land	450,000		Deferred tax liability	28,000
Building	1,750,000		Accumulated depreciation	420,000
Machinery and equipment	1,964,000		Total Liabilities	$2,123,000
Goodwill	37,000		Common stock, $50 par; 40,000 shares issued	$2,231,000
Total Assets	$5,429,400		Retained earnings	1,075,400
			Total Shareholders' Equity	$3,306,400
			Total Liabilities and Shareholders' Equity	$5,429,400

Your company has been engaged to perform an audit, during which you discover the following information:

Checks totaling $14,000 in payment of accounts payable were mailed on December 31, 2016, but were not recorded until 2017. Late in December 2016, the bank returned a customers $2,000 check marked "NSF," but no entry was made. Cash includes $100,000 restricted for building purposes.

Included in accounts receivable is a $30,000 note due on December 31, 2019, from Zeuss president.

During 2016, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was $51,300, and fair value on December 31, 2016, was $47,000. The decline in fair value is considered temporary. Zeus plans to hold these shares indefinitely.

Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for $32 per share in May 2016. This amount is included in investments.

On December 31, 2016, Zeus borrowed $500,000 from a bank in exchange for a 10% note payable, maturing December 31, 2021. Equal principal payments are due December 31 of each year beginning in 2017. This note is collateralized by a $250,000 tract of land acquired as a potential future building site, which is included in land.

The mortgage payable requires $50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2017. The balance of this mortgage was due June 30, 2017. On March 1, 2017, prior to issuance of the audited financial statements, Zeus consummated a noncancelable agreement with the lender to refinance this mortgage. The new terms require $100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2018. The final payment is due February 28, 2025.

The lawsuit liability will be paid in 2017.

Of the total deferred tax liability, $5,000 is considered a current liability.

The current income tax expense reported in Zeuss 2016 income statement was $61,200.

The company was authorized to issue 100,000 shares of $50 par value common stock.

Required:

Prepare a corrected classified balance sheet as of December 31, 2016.

Zeus Manufacturing Corporation Balance Sheet December 31, 2016
Assets
Current Assets:
Cash		$
Accounts receivable (net)
Inventories
Total current assets			$
Long-Term investment, at fair value
Property, Plant, and Equipment (at cost):
Land		$
Building	$
Machinery and equipment
Total
Less: Accumulated depreciation
Total property, plant, and equipment
Intangible Asset:
Goodwill
Other Assets:
Cash restricted for building purposes		$
Officer's note receivable
Land held for future building site
Total Assets			$
Liabilities
Current Liabilities:
Accounts payable		$
Current installments of long-term debt
Lawsuit liability
Income taxes payable
Deferred tax liability
Total current liabilities			$
Long-Term Debt:
Mortgage payable		$
Notes payable
Deferred tax liability
Total long-term debt
Total Liabilities			$
Shareholders' Equity
Contributed Capital:
Common stock, $50 par value		$
Additional paid-in capital
Total paid-in capital		$
Retained earnings
Accumulated Other Comprehensive Loss:
Unrealized decrease in value of long-term investment
Total		$
Less: Cost of treasury stock
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity			$