Problem 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Hubbard Corporation was prepared by the company HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 107,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 757,000 271,000 67,000 134,000 254,000 287,000 107,000 74,000 $1,951,000 $ 222,000 262,000 514,000 87,000 428,000 438,000 $1,951,000 Additional information: 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. TH land originally cost $57,000 but, due to a significant increase in market value, is listed at $134,000. The increase in the land accou was credited to retained earnings. 2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $27,000 of which w be sold in the coming year. The remainder will be held indefinitely 3. Notes payable are all long term. However, a $170,000 note requires an installment payment of $42,500 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the inventory is $167,000. Required: Problem 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Hubbard Corporation was prepared by the company HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 107,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 757,000 271,000 67,000 134,000 254,000 287,000 107,000 74,000 $1,951,000 $ 222,000 262,000 514,000 87,000 428,000 438,000 $1,951,000 Additional information: 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. TH land originally cost $57,000 but, due to a significant increase in market value, is listed at $134,000. The increase in the land accou was credited to retained earnings. 2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $27,000 of which w be sold in the coming year. The remainder will be held indefinitely 3. Notes payable are all long term. However, a $170,000 note requires an installment payment of $42,500 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the inventory is $167,000. Required
