Question
Presented below is the balance sheet of Tamarisk Corporation as of December 31, 2017. TAMARISK CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2)
Presented below is the balance sheet of Tamarisk Corporation as of December 31, 2017.
TAMARISK CORPORATION BALANCE SHEET DECEMBER 31, 2017 | ||
Assets | ||
Goodwill (Note 2) | $ 121,650 | |
Buildings (Note 1) | 1,640,000 | |
Inventory | 313,750 | |
Land | 950,000 | |
Accounts receivable | 171,650 | |
Treasury stock (50,000 shares) | 88,650 | |
Cash on hand | 177,550 | |
Assets allocated to trustee for plant expansion | ||
Cash in bank | 71,650 | |
Debt investments (held-to-maturity) | 139,650 | |
$3,674,550 | ||
Equities | ||
Notes payable (Note 3) | $ 601,650 | |
Common stock, authorized and issued, 1,000,000 shares, no par | 1,151,650 | |
Retained earnings | 804,650 | |
Noncontrolling interest | 56,650 | |
Appreciation capital (Note 1) | 571,650 | |
Income tax payable | 76,650 | |
Reserve for depreciation recorded to date on the building | 411,650 | |
$3,674,550 |
Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $571,650. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $121,650 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $121,650 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only.
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