Question
HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets Buildings $ 756,000 Land 268,000 Cash 66,000 Accounts receivable (net) 132,000 Inventories 252,000 Machinery 286,000 Patent
HUBBARD CORPORATION | |||
Balance Sheet | |||
At December 31, 2018 | |||
Assets | |||
Buildings | $ | 756,000 | |
Land | 268,000 | ||
Cash | 66,000 | ||
Accounts receivable (net) | 132,000 | ||
Inventories | 252,000 | ||
Machinery | 286,000 | ||
Patent (net) | 106,000 | ||
Investment in marketable equity securities | 72,000 | ||
Total assets | $ | 1,938,000 | |
Liabilities and Shareholders' Equity | |||
Accounts payable | $ | 221,000 | |
Accumulated depreciation | 261,000 | ||
Notes payable | 512,000 | ||
Appreciation of inventories | 86,000 | ||
Common stock, authorized and issued 106,000 shares of no par stock | 424,000 | ||
Retained earnings | 434,000 | ||
Total liabilities and shareholders' equity | $ | 1,938,00 |
Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The increase in the land account was credited to retained earnings.
Marketable equity securities consist of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely.
Notes payable are all long-term. However, a $160,000 note requires an installment payment of $40,000 due in the coming year.
Inventories are recorded at current resale value. The original cost of the inventories is $166,000.
Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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