Question
Sage Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
Sage Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $170,500 and for the equipment, $115,500. The allowance for doubtful accounts has a balance of $27,500. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
SAGE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (marketable)-at cost (fair value $130,500) $240,500 350,500 411,500 150,500 Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use 580,500 170,500 185,500 Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses 90,500 100,500 22,500 Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable 145,500 135,500 92,500 59,500 63,500Step by Step Solution
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