P 3-7 Balance sheet preparation; errors LO3-2, LO3-3 The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets SECTION 1 Buildings Land Cash Accounts receivable (net) Inventories Machinery Patent (net) Investment in marketable equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable $ 750,000 250,000 60,000 120,000 240,000 280,000 100,000 60,000 $1,860,000 $ 215,000 255,000 500,000 Appreciation of inventories Common stock, authorized and issued 100,000 shares of no par stock Retained earnings Total liabilities and shareholders' equity 80,000 430,000 380,000 $1,860,000 I The Role of Accounting as an Information System Additional Information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is hold- ing for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained earnings. 2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year. 4. Inventories are recorded at current resale value. The original cost of the inventories is $160,000. Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018.