Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3-7 (Algo) Balance sheet preparation; errors (L03-2, 3-3) ook inces The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 3-7 (Algo) Balance sheet preparation; errors (L03-2, 3-3) ook inces The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings $ 767,000 Land 301, eee Cash 77,000 Accounts receivable (net) 154,000 Inventory 274 , Machinery 297,000 Patent (net) 117, eee Investment in equity securities 94, 000 Total assets $2,081,000 Liabilities and Shareholders' Equity Accounts payable $ 232, eee Accumulated depreciation 272, eee Notes payable 534,000 Appreciation of inventory 97,899 Common stock (authorized and issued 117,000 shares of no par stock) 468, eee Retained earnings 478, eee Total liabilities and shareholders' equity $2,081, eee 1 The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $67,000 but, due to a significant increase in market value, is listed at $154,000. The increase in the land account was credited to retained earnings 2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $37000 of which will 3 Notes payable are all long term. However, a $270,000 note requires an installment payment of $67,500 due in the coming year 4. Inventory is recorded at current resale value The original cost of the inventory is $177,000 Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021 (Amounts to be deducted should be Indicated by a minus sign.) HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: OK 1 nces Total current assets Investments: Total investments Property, plant, and equipment Net property, plant, and equipment Intangible assets: Total assets Liabilities and Shareholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Shareholders' equity Total current liabilities Long-term liabilities: Total liabilities Shareholders' equity: 5 Total shareholders' equity Total liabilities and shareholders' 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

More Books

Students also viewed these Accounting questions

Question

Explain the forces that influence how people handle conflict

Answered: 1 week ago