Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The adjusted trial balance of Grouper Company and other related information for the year 2020 are presented as follows. GROUPER COMPANY ADJUSTED TRIAL BALANCE DECEMBER
The adjusted trial balance of Grouper Company and other related information for the year 2020 are presented as follows. GROUPER COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $ 43,550 Accounts Receivable 166,050 Allowance for Doubtful Accounts $ 9,160 Prepaid Insurance 6,360 Inventory 211,050 Equity Investments (long-term) 341,550 Land 87,550 Construction in Progress (building) 126,550 Patents 36,000 Equipment 402,550 Accumulated Depreciation Equipment 240,460 Discount on Bonds Payable 20,000 Accounts Payable 150,550 Accrued Liabilities 51,750 Notes Payable 96,550 Bonds Payable 202,550 Common Stock 502,550 Paid-in Capital in Excess of Par-Common Stock 45,000 Retained Earnings 142,640 $1,441,210 $1,441,210 Additional information: 1. The LIFO method of inventory value is used. 2. The cost and fair value of the long-term investments that consist of stocks (with ownership less than 20% of total shares) are the same. 3. The amount of the Construction in Progress account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $87,550, as shown in the trial balance. 4. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis. 5. Of the discount on bonds payable, $2,000 will be amortized in 2021. 6. The notes payable represent bank loans that are secured by long-term investments carried at $122,550. These bank loans are due in 2021. 7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2031. 8. 600,000 shares of common stock of a par value of $1 were authorized, of which 502,550 shares were issued and outstanding. Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed. (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.) GROUPER COMPANY Balance Sheet Assets 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