Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

resented below is the balance sheet of Bramble Corporation for the current year, 2020. BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 489,050

resented below is the balance sheet of Bramble Corporation for the current year, 2020.

BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2020

Current assets $ 489,050 Current liabilities $ 384,050
Investments 644,050 Long-term liabilities 1,004,050
Property, plant, and equipment 1,724,050 Stockholders equity 1,774,050
Intangible assets 305,000 $3,162,150
$3,162,150

The following information is presented.

1. The current assets section includes cash $154,050, accounts receivable $174,050 less $14,050 for allowance for doubtful accounts, inventories $184,050, and unearned rent revenue $9,050. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value.
2. The investments section includes the cash surrender value of a life insurance contract $44,050; investments in common stock, short-term $84,050 and long-term $274,050; and bond sinking fund $241,900. The cost and fair value of investments in common stock are the same.
3. Property, plant, and equipment includes buildings $1,044,050 less accumulated depreciation $364,050, equipment $454,050 less accumulated depreciation $184,050, land $504,050, and land held for future use $270,000.
4. Intangible assets include a franchise $169,050, goodwill $104,050, and discount on bonds payable $31,900.
5. Current liabilities include accounts payable $144,050, notes payable-short-term $84,050 and long-term $124,050, and income taxes payable $31,900.
6. Long-term liabilities are composed solely of 7% bonds payable due 2028.
7. Stockholders equity has preferred stock, no par value, authorized 200,000 shares, issued 74,050 shares for $444,300, and common stock, $1.00 par value, authorized 400,000 shares, issued 104,050 shares at an average price of $10. In addition, the corporation has retained earnings of $289,250.

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Just In Time Accounting How To Decrease Costs And Increase Efficiency

Authors: Steven M. Bragg

3rd Edition

0470403721, 978-0470403723

More Books

Students also viewed these Accounting questions

Question

=+1. Which of the five bases of power do you prefer to use?

Answered: 1 week ago

Question

Define success.

Answered: 1 week ago