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i need help spving this problem please!! Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 2017 LOSSOM CORPORATION
i need help spving this problem please!!
Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 2017 LOSSOM CORPORATION BALANCE SHEET DECEMBER 31 2017 488,300 Current liabilities 383,300 Current assets Investments 643,300 Long-term liabilities 1,003,300 Property, plant, and equipment 1,723,300 Stockholders' equity 1,773,300 Intangible assets $3,159,900 305,000 $3,159,900 The following information is presented. 1. The current assets section includes cash $153,300, accounts receivable $173,300 less $13,300 for allowance for doubtful accounts, inventories $183,300, and unearned rent revenue $8,300 Inventory is stated on the market 2. The investments section includes the cash surrender value of a life insurance contract $43,300; investments in common stock, short-term (trading) $83,300 and long-term (available-for-sale) $273,300; and bond sinking fund $243,400. The cost and fair value of investments in common stock are the same 3. Property, plant, and equipment includes buildings $1,043,300 less accumulated depreciation $363,300, equipment $453,300 less accumulated depreciation $183,300, land $503,300, and land held for future use $270,000 4. Intangible assets include a franchise $168,300, goodwill $103,300, and discount on bonds payable $33,400. 5. Current liabilities include accounts payable $143,300, notes payable short-term $83,300 and long-term $123,300, and income taxes payable $33,400. 6. Long-term liabilities are composed solely of 7% bonds payable due 2025 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares issued 73,300 shares for $439,800, and common stock, $1.00 par value, authorized 400,000 shares issued 103,300 shares at an average price of $10. In addition, the corporation has retained earnings of $300,500. Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Bullding and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)Step by Step Solution
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