Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented below is the balance sheet of Bramble Corporation for the current year, 2020. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 488,150
Presented below is the balance sheet of Bramble Corporation for the current year, 2020. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 488,150 Current liabilities Investments 643,150 Long-term liabilities Property, plant, and equipment 1,723,150 Stockholders' equity Intangible assets 305,000 $3,159,450 $ 383,150 1,003,150 1,773,150 $3,159,450 The following information is presented. 1. The current assets section includes cash $153,150, accounts receivable $173,150 less $13,150 for allowance for doubtful accounts, inventories $183,150, and unearned rent revenue $8,150. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contract $43,150; investments in common stock, short-term $83,150 and long-term $273,150; and bond sinking fund $243,700. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,043,150 less accumulated depreciation $363,150, equipment $453,150 less accumulated depreciation $183,150, land $503,150, and land held for future use $270,000. Intangible assets include a franchise $168,150, goodwill $103,150, and discount on bonds payable $33,700. 5. Current liabilities include accounts payable $143,150, notes payable-short-term $83,150 and long-term $123,150, and income taxes payable $33,700. 6. Long-term liabilities are composed solely of 7% bonds payable due 2028. 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 73,150 shares for $438,900, and common stock, $1.00 par value, authorized 400,000 shares, issued 103, 150 shares at an average price of $10. In addition, the corporation has retained earnings of $302,750. Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started