Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 5-4 Presented below is the balance sheet of Bramble Corporation as of December 31, 2017. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill
Problem 5-4 Presented below is the balance sheet of Bramble Corporation as of December 31, 2017. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) $ 123,840 1,640,000 315,940 950,000 173,840 90,840 179,740 73,840 141,840 $3,689,880 Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings Noncontrolling interest Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building $ 603,840 1,153,840 806,840 58,840 573,840 78,840 413,840 $3,689,880 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 $573,840. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $123,840 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $123,840 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. BRAMBLE CORPORATION Balance Sheet December 31, 2017 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Long-term Investments Assets Allocated to Trustee for Expansion: Cash Treasury Stock Property, Plant and Equipment - Land Buildings Less Accumulated Depreciation-Building - Total Assets Liabilities and Stockholders' Equity Current Liabilities Notes Payable Income Tax Payable Total Current Liabilities Long-term Liabilities Notes Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Less : Noncontrolling Interest Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity
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