Part I: Classified balance sheet 1. Use the following post-closing balance information at 12/31/20 to create a professional balance sheet. All amounts listed in thousands. Inventory 250 Deferred tax asset 150 Prepaid insurance 35 Accounts payable Accumulated depreciation 6,000 Bonds payable (2030 maturity) Note receivable (2022 maturity) 40 Equipment Treasury stock 5 Accounts receivable Premium on bonds payable 100 Preferred stock 500 Accumulated other comprehensive 25 Goodwill income (debit balance) Allowance for doubtful accounts Discount on notes receivable Security FV adjustment - AFS (debit 10 Pension liability 350 balance) Additional paid-in capital 5,000 Cash and cash equivalents Available for sale securities - debt 50 Common stock (2025 maturity) Factories 15,000 Accrued expenses and payables 70 200 600 10% of the bonds will come due 7/1/21.5% of the premium will expire with their maturity. 10% of the equipment account is no longer used in operations and is being held idle. 5% of the accumulated depreciation is associated with this idle equipment. 5% of the cash and cash equivalents are legally-restricted in accordance with agreements tied to the long-term bonds payable. Only 70% of the prepaid insurance contract will be used in 2021. The inventory in the ledger is presented at cost, the net realizable value of the inventory is $190,000. You must calculate retained earnings from the information given. . 2. Answer the following questions as completely as possible: a. What is the book value of the idle equipment? What does this value indicate about the equipment to investors? b. What does the book value of the bonds and note receivable represent? (not the numerical value explain what the numerical value means) Part I: Classified balance sheet 1. Use the following post-closing balance information at 12/31/20 to create a professional balance sheet. All amounts listed in thousands. Inventory 250 Deferred tax asset 150 Prepaid insurance 35 Accounts payable Accumulated depreciation 6,000 Bonds payable (2030 maturity) Note receivable (2022 maturity) 40 Equipment Treasury stock 5 Accounts receivable Premium on bonds payable 100 Preferred stock 500 Accumulated other comprehensive 25 Goodwill income (debit balance) Allowance for doubtful accounts Discount on notes receivable Security FV adjustment - AFS (debit 10 Pension liability 350 balance) Additional paid-in capital 5,000 Cash and cash equivalents Available for sale securities - debt 50 Common stock (2025 maturity) Factories 15,000 Accrued expenses and payables 70 200 600 10% of the bonds will come due 7/1/21.5% of the premium will expire with their maturity. 10% of the equipment account is no longer used in operations and is being held idle. 5% of the accumulated depreciation is associated with this idle equipment. 5% of the cash and cash equivalents are legally-restricted in accordance with agreements tied to the long-term bonds payable. Only 70% of the prepaid insurance contract will be used in 2021. The inventory in the ledger is presented at cost, the net realizable value of the inventory is $190,000. You must calculate retained earnings from the information given. . 2. Answer the following questions as completely as possible: a. What is the book value of the idle equipment? What does this value indicate about the equipment to investors? b. What does the book value of the bonds and note receivable represent? (not the numerical value explain what the numerical value means)
