Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the current year, 2014. SARGENT CORPORATION BALANCE SHEET DECEMBER 31, 2014 Current assets $ 489,710 Current liabilities $ 384,710 Investments 644,710 Long-term liabilities 1,004,710 Property, plant, and equipment 1,724,710 Stockholders equity 1,774,710 Intangible assets 305,000 $3,164,130 $3,164,130 The following information is presented. 1. The current assets section includes cash $154,710, accounts receivable $174,710 less $14,710 for allowance for doubtful accounts, inventories $184,710, and unearned rent revenue $9,710. Inventory is stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes the cash surrender value of a life insurance contract $44,710; investments in common stock, short-term (trading) $84,710 and long-term (available-for-sale) $274,710; and bond sinking fund $240,580. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,044,710 less accumulated depreciation $364,710; equipment $454,710 less accumulated depreciation $184,710; land $504,710; and land held for future use $270,000. 4. Intangible assets include a franchise $169,710; goodwill $104,710; and discount on bonds payable $30,580. 5. Current liabilities include accounts payable $144,710; notes payable-short-term $84,710 and long-term $124,710; and income taxes payable $30,580. 6. Long-term liabilities are composed solely of 8% bonds payable due 2022. 7. Stockholders equity has preferred stock, no par value, authorized 200,000 shares, issued 74,710 shares for $448,260; and common stock, $1.00 par value, authorized 400,000 shares, issued 104,710 shares at an average price of $10. In addition, the corporation has retained earnings of $279,350. 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.)

Presented below is the balance sheet of Sergeant Corporation for the current year, 2014. SARGENT CORPORATION BALANCE SHEET DECEMBER 31, 2014 Current assets $ 489,710 Current liabilities $ 384,710 Investments 644,710 Long-term liabilities 1,004,710 Property, plant, and equipment 1,724,710 Stockholders' equity 1,774,710 Intangible assets 305,000 $3,164,130 $3,164,130 The following information is presented. 1. The current assets section includes cash $154,710, accounts receivable $174,710 less $14,710 for allowance for doubtful accounts, inventories $184,710, and unearned rent revenue $9,710. Inventory is stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes the cash surrender value of a life insurance contract $44,710; investments in common stock, short-term (trading) $84,710 and long-term (available-for-sale) $274,710; and bond sinking fund $240,580. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,044,710 less accumulated depreciation $364,710; equipment $454,710 less accumulated depreciation $184,710; land $504,710; and land held for future use $270,000. 4. Intangible assets include a franchise $169,710; goodwill $104,710; and discount on bonds payable $30,580. 5. Current liabilities include accounts payable $144,710; notes payable-short-term $84,710 and long-term $124,710; and income taxes payable $30,580. 6. Long-term liabilities are composed solely of 8% bonds payable due 2022. 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 74,710 shares for $448,260; and common stock, $1.00 par value, authorized 400,000 shares, issued 104,710 shares at an average price of $10. In addition, the corporation has retained earnings of $279,350. 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 The current assets section includes cash $154,710, accounts receivable $174,710 less $14,710 for allowance for doubtful accounts, inventories $184,710, and unearned rent revenue $9,710. Inventory Is stated on the lower-of-FIFO-cost-or-market. The investments section includes the cash surrender value of a life insurance contract $44,710; Investments In common stock, short-term (trading) $84,710 and long-term (available-for-sale) $274,710; and bond sinking fund $240,580. The cost and fair value of investments in common stock are the same. Property, plant, and equipment includes buildings $1,044,710 less accumulated depreciation $364,710; equipment $454,710 less accumulated depreciation $184,710; land $504,710; and land held for future use $270,000. Intangible assets include a franchise $169,710; goodwill $104,710; and discount on bonds payable $30,580. Current liabilities include accounts payable $144,710; notes payable-short-term $84,710 and long-term $124,710; and income taxes payable $30,580. Long-term liabilities are composed solely of 8% bonds payable due 2022. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 74,710 shares for $448,260; and common stock, $1.00 par value, authorized 400,000 shares, issued 104,710 shares at an average price of $10. In addition, the corporation has retained earnings of $279,350