Problem 5-5

Presented below is the balance sheet of Sargent Corporation for the current year, 2017.

TAMARISK CORPORATION

BALANCE SHEET

31-Dec-17CURRENT CURRENT ASSETS489,470

CURRENT LIABILITIES384,470

INVESTMENTS644,470LONG-TERM LIABILITIES1,004,470

PROPERTY, PLANT, AND EQUIPMENT1,724,470

STOCKHOLDERS' EQUITY1,774,470

INTANGIBLE ASSET305,000

3,163,4103,163,410

The following information is presented.

The current assets section includes cash $154,470, accounts receivable $174,470 less $14,470 for allowance for doubtful accounts, inventories $184,470, and unearned rent revenue $9,470. Inventory is stated on the lower-of-FIFO-cost-or-market.The investments section includes the cash surrender value of a life insurance contract $44,470; investments in common stock, short-term $84,470 and long-term $274,470; and bond sinking fund $241,060. The cost and fair value of investments in common stock are the same.Property, plant, and equipment includes buildings $1,044,470 less accumulated depreciation $364,470, equipment $454,470 less accumulated depreciation $184,470, land $504,470, and land held for future use $270,000.Intangible assets include a franchise $169,470, goodwill $104,470, and discount on bonds payable $31,060.Current liabilities include accounts payable $144,470, notes payable-short-term $84,470 and long-term $124,470, and income taxes payable $31,060.Long-term liabilities are composed solely of7% bonds payable due 2025.Stockholders' equity has preferred stock, no par value, authorized200,000 shares, issued74,470 shares for $446,820, and common stock, $1.00 par value, authorized400,000 shares, issued104,470 shares at an average price of $10. In addition, the corporation has retained earnings of $282,950.

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.(List Current Assets in order of liquidity. List Property,Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)