Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need to complete required 1-4. Any help would be appreciated please and thank you. 1-14 Comprehensive: Balance Company's balance sheer $ 44,200 37.100 109,300 20,000

image text in transcribed

need to complete required 1-4. Any help would be appreciated please and thank you.
1-14 Comprehensive: Balance Company's balance sheer $ 44,200 37.100 109,300 20,000 3.200 1,600 12,500 13,800 80,000 Income Taxes Payable Inventory Investment in Affiliate Long Term Liabilities (book valve Miscellaneous Current Payables Notes Receivable Preferred Stock Property, plant, and Equipment Relined Earnings Gosh Hos useful p sive: Balance Sheet, Schedules, and Notes The following is an alphabetical listing of Stone Boat e llerent intor balance sheet accounts and account balances on December 31, 2019 Accounts Payable Accounts Receivable $ 19.700 Accumulated Depreciation 85,300 Additional Paid in Capital on Common Stock 30,000 Additional Pald-in Capital on Preferred Stock 91,000 Allowance for Doubtful Accounts 6,800 Bond Sinking Fund 17.000 32,000 Common Stock 296,700 Additional information: 84,600 The company reports on the balance sheet the net book value of property and quipment and long-term ries (known as control accounts). The related details are disclosed in the notes The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, S29,500; buildings, S164,600, store fixtures, S72,600; and office equipment, $30,000. 3. The accumulated depreciation breakdown is as follows: buildings, S54,600; store fixtures, $37,400; and office cquipment, $17,300. 4. The long-term debt includes 12%, S36,000 face value bonds that mature on December 31, 2024, and have an unamortized bond discount of $1,000; 11%, $48,000 face value bonds that mature on December 31, 2025, have a premium on bonds payable of $1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of $6,200 and matures on January 1, 2022. 5. The non-interest-bearing note receivable matures on June 1, 2023. 6. Inventory is listed at lower of cost or market; cost is determined on the basis of average cost. 7. The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%, $50,000, 15-year bonds issued by this affiliate, Jay Company. 8. Common stock has a $10 par value per share, 10,000 shares are authorized, and 1,000 shares were issued during 2019 at a price of $13 per share, resulting in 8,000 shares issued at year end. 9. Preferred stock has a 350 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2019 at a price of $55 per share, resulting in 640 shares issued at year-end. 10. On January 15, 2020, before the December 31, 2019, balance sheet was issued, a building with a cost of $20,000 and a book value of $7,000 was totally destroyed. Insurance proceeds will amount to only $5,000. 11. Net income and dividends declared and paid during the year were $50,500 and $21,000, respectively. Required: d'repare Stone Boat's December 31, 2019, balance sheet (including appropriate parenthetical notations). l'repare a statement of shareholders' equity for 2019. (Hint: Work back from the ending account balances.) Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities, and subsequent events. Next Level Compute the debt-to-assets ratio at the end of 2019. What is your evaluation of this ratio if it was 39% at the end of 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

Explain the pages in white the expert taxes

Answered: 1 week ago