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Instructions Prepare a corrected classified balance sheet in good form. The notes above are for inform P5.5 (LO2) Groupwork roupwork (Balance Sheet Adjustment an (Balance

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Instructions Prepare a corrected classified balance sheet in good form. The notes above are for inform P5.5 (LO2) Groupwork roupwork (Balance Sheet Adjustment an (Balance Sheet Adjustment and Preparation) Presented below is the balance sheet of Sargent Corporation for the current year, 2020. Current assets Investments Property, plant, and equipment Intangible assets Sargent Corporation Balance Sheet December 31, 2020 $ 485,000 Current liabilities 640,000 Long-term liabilities 1,720,000 Stockholders' equity 305,000 $3,150,000 $ 380,000 1,000,000 1,770,000 $3,150,000 The following information is presented. 1. The current assets section includes cash $150,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned rent revenue $5,000. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contract $40.000: invest- ments in common stock, short-term $80,000 and long-term $270,000; and bond sinking fund $250,000. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,040,000 less accumulated depreciation $360,000, equipment $450,000 less accumulated depreciation $180,000, land $500,000, and land held for future use $270,000. 4. Intangible assets include a franchise $165,000, goodwill $100,000, and discount on bonds payable $40,000. 5. Current liabilities include accounts payable $140,000, notes payable-short-term $80,000 and long- term $120,000, and income taxes payable $40,000. 6. Long-term liabilities are composed solely of 7% bonds payable due 2028 7. Stockholders' equity has preferred stock, no par value, authorized 200.000 shares, issued 70.000 shares for $450,000; and common stock. $1.00 par value, authorized 400.000 shares, issued 100.000 shares at an average price of Sto. In addition, the corporation has retained earnings of $320.000 Instructions Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as af fected by the information given above

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