Problem 3-7 Balance sheet preparation; errors [LO3-2, 3-3 The following balance sheet for the Hubbard Corporation was prepared by the company. Ba lance Sheet Baildinga Land Cash Acoounts receivable (net) Inventories Machinery Patent (net) nvestnent in marketable equity securitien 750,000 250,000 60,000 120, 000 240,000 200,000 100.000 Total aasets $1.860,000 Liabilities and Shareholders Equity coumulated depreciation Notes payable Appreeiation of inventories Conmon stock,authorized and issued 215,000 255,030 500,000 D,000 100,000shares of no par stock 430,000 Retaised earninge 1,850,000 Total liabilities and shareholdera oqaity Additional information: 1. The buldings, land, a wns credited to etsa sgniicant incesed an 200 The iert land originally cost $50,000 but, d s of other corporations and are recorded at cost., $20000 of which well be sold in the note requires an installment payment of $25,000 due in the coming year 2. Marketable equity securities coming year. The remainder will be held indefinitely 3. Notes payable are all long-term. However a $100,000 4. Inventories are recorded at current resale value. The original cost of the inventories is $160,000 Prevof5 Next 20 p 2 3 4