Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

!!!PLEASE MAKE SURE TO CHECK THE FORMAT IN WHICH I POST UNDERNEATH THE QUESTION AND MAKE SURE THERE'S ENOUGH TO FILL EVERY BOX!!! Presented below

!!!PLEASE MAKE SURE TO CHECK THE FORMAT IN WHICH I POST UNDERNEATH THE QUESTION AND MAKE SURE THERE'S ENOUGH TO FILL EVERY BOX!!!

Presented below is the balance sheet of Sargent Corporation for the current year, 2017.

BLOSSOM CORPORATION BALANCE SHEET DECEMBER 31, 2017

Current assets $ 487,550 Current liabilities $ 382,550
Investments 642,550 Long-term liabilities 1,002,550
Property, plant, and equipment 1,722,550 Stockholders equity 1,772,550
Intangible assets 305,000 $3,157,650
$3,157,650

The following information is presented.

1. The current assets section includes cash $152,550, accounts receivable $172,550 less $12,550 for allowance for doubtful accounts, inventories $182,550, and unearned rent revenue $7,550. Inventory is stated on the lower-of-FIFO-cost-or-market.
2. The investments section includes the cash surrender value of a life insurance contract $42,550; investments in common stock, short-term $82,550 and long-term $272,550; and bond sinking fund $244,900. The cost and fair value of investments in common stock are the same.
3. Property, plant, and equipment includes buildings $1,042,550 less accumulated depreciation $362,550, equipment $452,550 less accumulated depreciation $182,550, land $502,550, and land held for future use $270,000.
4. Intangible assets include a franchise $167,550, goodwill $102,550, and discount on bonds payable $34,900.
5. Current liabilities include accounts payable $142,550, notes payable-short-term $82,550 and long-term $122,550, and income taxes payable $34,900.
6. Long-term liabilities are composed solely of 7% bonds payable due 2025.
7.

Stockholders equity has preferred stock, no par value, authorized 200,000 shares, issued 72,550 shares for $435,300, and common stock, $1.00 par value, authorized 400,000 shares, issued 102,550 shares at an average price of $10. In addition, the corporation has retained earnings of $311,750.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

BLOSSOM CORPORATION Balance Sheet Assets Liabilities and Stockholders' Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Access Audit Handbook

Authors: Alison Grant

1st Edition

1859461778, 978-1859461778

More Books

Students also viewed these Accounting questions

Question

What makes the balance sheet balance?

Answered: 1 week ago

Question

=+How do banks mitigate these problems?

Answered: 1 week ago

Question

b. What is the 6th percentile of the distribution?

Answered: 1 week ago