Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flounder Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PLEASE

Flounder Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PLEASE PROVIDE STEPS WITH EXPLANATION AND ANSWERS. THANK YOU!

FLOUNDER COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020

Current assets
Cash $237,500
Accounts receivable (net) 347,500
Inventory (lower-of-average-cost-or-market) 408,500
Equity investments (marketable)-at cost (fair value $127,500) 147,500
Property, plant, and equipment
Buildings (net) 577,500
Equipment (net) 167,500
Land held for future use 182,500
Intangible assets
Goodwill 87,500
Cash surrender value of life insurance 97,500
Prepaid expenses 19,500
Current liabilities
Accounts payable 142,500
Notes payable (due next year) 132,500
Pension obligation 89,500
Rent payable 56,500
Premium on bonds payable 60,500
Long-term liabilities
Bonds payable 507,500
Stockholders equity
Common stock, $1.00 par, authorized 400,000 shares, issued 297,500 297,500
Additional paid-in capital 167,500
Retained earnings ?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $167,500 and for the equipment, $112,500. The allowance for doubtful accounts has a balance of $24,500. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

image text in transcribed

image text in transcribed

image text in transcribed

FLOUNDER COMPANY Balance Sheet Assets $ $ : Liabilities and Stockholders' Equity $

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

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions

Question

6. Explain what causes unsafe acts.

Answered: 1 week ago