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Please help me fixing this fast and correctly The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the companys controller. As
Please help me fixing this fast and correctly
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the companys controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.
SANDERSON MANUFACTURING COMPANY | |||||
Balance Sheet | |||||
At December 31, 2018 | |||||
($ in 000s) | |||||
Assets | |||||
Current assets: | |||||
Cash | $ | 2,050 | |||
Accounts receivable | 5,100 | ||||
Allowance for uncollectible accounts | (1,200 | ) | |||
Finished goods inventory | 6,800 | ||||
Prepaid expenses | 2,000 | ||||
Total current assets | 14,750 | ||||
Long-term assets: | |||||
Investments | 3,800 | ||||
Raw materials and work in process inventory | 3,050 | ||||
Equipment | 23,000 | ||||
Accumulated depreciationequipment | (5,000 | ) | |||
Patent | ? | ||||
Total assets | $ | ? | |||
Liabilities and Shareholders Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 6,000 | |||
Note payable | 5,600 | ||||
Interest payablenote | 900 | ||||
Deferred revenue | 4,600 | ||||
Total current liabilities | 17,100 | ||||
Long-term liabilities: | |||||
Bonds payable | 6,300 | ||||
Interest payablebonds | 300 | ||||
Shareholders equity: | |||||
Common stock | $ | ? | |||
Retained earnings | ? | ? | |||
Total liabilities and shareholders equity | ? | ||||
Additional information ($ in 000s):
- Certain records that included the account balances for the patent and shareholders equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders equity. Retained earnings at the beginning of the year was $5,600. Net income for 2018 was $1,950 and $500 in cash dividends were declared and paid to shareholders.
- Management intends to sell the investments in the next six months.
- Interest on both the note and the bonds is payable annually.
- The note payable is due in annual installments of $1,400 each.
- Deferred revenue will be recognized as revenue equally over the next two fiscal years.
- The common stock represents 400,000 shares of no par stock authorized, 330,000 shares issued and outstanding.
Required: Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 (S in 000s, except share data) Assets Current assets Cash 2,050 3,800 Short-term investments 5,100 Accounts receivable, net of allowance -1,200 6,800 Inventories Finished goods $ 6,800 Raw materials and work in process 3,050 Prepaid expenses 2,000 11,850 Accumulated depreciation (5,000) 24,600 Total current assets Property. plant, and equipment Equipment 6,850 Intangible assets 6,850 Deferred revenue 2,300 Note payable 1,400 Interest payable 300 Total current liabilities 10,900 Long-term liabilities Deferred revenue 2,300 Note payable 4,200 Bonds payable 6,300 12,800 23,700 Shareholders' equity Common stock 12,700 Retained earnings 7,050 Total shareholders' equity 19,750 Total liabilities and shareholders' equity 43,450
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