Presented below is the balance sheet for HHD, Inc., at December 31, 2021. Current assets Investments Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 604,000 503,000 2,028,000 202,000 $3,337,000 $ 404,000 1,073,000 1,860,000 $3,337,000 The captions shown in the summarized statement above include the following: a. Current assets: cash, $151,000; accounts receivable (net), $201,000; inventory, $226,000; and prepaid insurance, $26,000. b. Investments: investment in equity securities, short term, $91,000, and long term, $161,000; and restricted cash, long term, $251,000. C. Property, plant, and equipment buildings, $1,510,000 less accumulated depreciation, $601,000; equipment, $510,000 less accumulated depreciation, $201,000; and land, $810,000. d. Intangible assets net of amortization: patent, $111,000; and copyright, $91,000. e. Current liabilities: accounts payable, $101,000; notes payable, short term, $151,000, and long term, $91,000; and income taxes payable, $61,000. f. Long-term liabilities: bonds payable due 2023. g. Shareholders' equity: common stock, $1,050,000; retained earnings, $810,000. Six hundred thousand shares of no par common stock are authorized, of which 210,000 shares were issued and are outstanding. Return to question Required: Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. HHD, INC. Balance Sheet At December 31, 2021 Assets Current assets: Cash $ Investment in equity securities Accounts receivable (net) Inventory Prepaid insurance 151,000 91.000 201,000 226,000 (26,000) X 643,000 Total current assets Investments: Investment in equity securities Restricted cash $ olol 161,000 (251,000) X Return to question $ (90,000) Total investments Property, plant, and equipment: Land Buildings Equipment 810,000 1,510,000 510,000 2,830,000 (601,000) (201,000) 2,028,000 Less: Accumulated depreciation - buildings Less: Accumulated depreciation - equipment $ Net property, plant, and equipment: Intangible assets: Patent (net) Copyright (net) 110,000 X 91,000 201,000 2,782,000 Total intangible assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable (current) Income taxes payable $ 101,000 151,000 61,000 313,000 Total current liabilities Long-term liabilities: $ Accounts payable Notes payable (current) Income taxes payable 101,000 151,000 61,000 Total current liabilities 313,000 Long-term liabilities: Notes payable (long-term) Bonds payable $ 91,000 1,073,000 Total long-term liabilities 1,164,000 1,477,000 Total liabilities Shareholders' equity: Common stock 1,050,000 810,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 1,860,000 3,337,000 $
