Print Item Chapter 4 Problems eBook Calculator Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2016, prepared by Zeus Manufacturing Corporation's bookkeeper. Assets $133,800 Cash Accounts receivable (net) 900,000 500,000 80,000 Inventories Prepaid income taxes 61,200 Investments Zeus Manufacturing Corporation Balance Sheet for the Year Ended December 31, 2016 Liabilities and Shareholders' Equity $225,000 Accounts payable 345,700 Mortgage payable 560,000 Notes payable 40,000 Lawsuit liability 57,700 Income taxes payable 450,000 Deferred tax liability 1,750,000 Accumulated depreciation 1,964,000 Total Liabilities 37,000 Common stock, $50 par; 40,000 shares issued $5,429,400 Retained earnings Total Shareholders' Equity Total abilities and Shareholders' Equity 28,000 > Land 420,000 $2,123,000 Building Machinery and equipment Goodwill $2,231,000 1,075,400 Total Assets $3,306,400 $5,429.400 Your company has been engaged to perform an audit, during which you discover the following information: Printem Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling $14,000 in payment of accounts payable were mailed on December 31, 2016, but were not recorded until 2017. Late in December 2016, the bank returned a customer's $2,000 check marked NSF, but no entry was made. Cash includes $100,000 restricted for building purposes. 2. Included in accounts receivable is a $30,000 note due on December 31, 2019, from Zeus's president 3. During 2016, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was $51,300, and fair value on December 31 2016, was $47,000. The decine in fair value is considered temporary. Zeus plans to hold these shares indefinitely 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for $32 per share in May 2016. This amount is included in investments 5. On December 31, 2016, Zeus borrowed $500,000 from a bank in exchange for a 10% note payable, maturing December 31, 2021. Equal principal payments are due December 31 of each year beginning in 2017. This note is collateralized by a $250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires $50,000 principal payments, plus interest at the end of each month. Payments were made on January 31 and February 28, 2017. The balance of this mortgage was due June 30, 2017. On March 1, 2017, prior to issuance of the audited financial statements, Zeus consommated a noncancelable agreement with the lander to refinance this mortgage. The new terms require $100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2018. The final payment is dus February 28, 2025. 7. The lawsuit liability will be paid in 2017, 8. Of the total deferred tax liability, 35,000 is considered a current ability 9. The current Income tax expense reported in Zeus's 2016 income statement was $61,200. 10. The company was authorized to issue 100,000 shares of $50 par value common stock Required: Prepare a corrected cassified balance sheet as of December 21, 2016. Zeus Manufacturing Corporation Balance Sheet December 31, 2016 Assets Current Assets Chapter 4 Problems eBook Calculator Printem TASSUES Current Assets: Total current assets I III Property, plant, and Equipment (at cost): Total Total property, plant, and equipment Intangible Asset: II Other Assets: Total Assets Liabilities Current Liabilities: Total current liabilities > Long-Term Debt: O Total long-term debt Total Liabilities Shareholders' Equity Contributed Capital: Luid From Long-Term Debt: Total long-term debt Total Liabilities Shareholders' Equity Contributed Capital: Total paid-in capital > Accumulated Other Comprehensive Loss: Total Total Shareholders' Equity Total Liabilities and Shareholders' Equity