The following incomplete balance sheet for the Fernandez Corp was prepared by the assistant to the companys controller, who quit before finishing the job You have been asked to finish the job and make sure it is correct Additional information (also in 000s) The assistant managed to misplace some records for the account balances for the patent and the shareholders equity accounts However, the controller tells you that a draft of the balance sheet showed a debt to equity ratio of 2 1 Retained earnings at the beginning of the year was $4,000 Net income for 2020 was $1,560 and dividends of $560 had been declared and paid The plan is for the company to sell the investments within the next 6 months Interest on both the notes and the bonds are to be paid annually The notes payable are due in annual installments of $1,000 each The customer deposits will be earned equally over the next two years The common stock represents 400,000 shares of no par stock authorized, with 250,000 shares issued and outstanding You are to prepare a corrected classified balance sheet Include the proper headings for each classification as well as titles for any necessary subtotals Attach a sheet with your (or the groups final) labelled work to earn full credit Fernandez Corp Balance Sheet At December 31, 2020 ($ in thousands) Assets Current Assets Cash Accounts receivable Allowance for doubtful accounts Finished goods inventory Prepaid expenses Total current assets Long term assets Investments Raw materials and work in process inventory Equipment Accumulated depreciation Patent (net) Total Assets $ 1,250 3,500 (400) 6,000 1,200 11,550 3,000 2,250 15,000 (4,200) $ 5,200 4,000 100 3,000 12,300 Liabilities Shareholders' Equity Current liabilities Accounts payable Notes payable Interest payable (on notes) Customer deposits on orders placed Total current liabilities Long term liabilities Bonds payable Interest payable (on bonds) Shareholders' Equity Common stock Retained earnings Total liabilities shareholders' equity 5,500 200

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 08, 2024

The following incomplete balance sheet for the Fernandez Corp. was prepared by the assistant to the companys controller, who quit before finishing the job. You

The following incomplete balance sheet for the Fernandez Corp. was prepared by the assistant to the companys controller, who quit before finishing the job. You have been asked to finish the job and make sure it is correct.

image text in transcribed

Additional information (also in 000s):

The assistant managed to misplace some records for the account balances for the patent and the shareholders equity accounts. However, the controller tells you that a draft of the balance sheet showed a debt to equity ratio of 2:1. Retained earnings at the beginning of the year was $4,000. Net income for 2020 was $1,560 and dividends of $560 had been declared and paid.
The plan is for the company to sell the investments within the next 6 months.
Interest on both the notes and the bonds are to be paid annually.
The notes payable are due in annual installments of $1,000 each.
The customer deposits will be earned equally over the next two years.
The common stock represents 400,000 shares of no par stock authorized, with 250,000 shares issued and outstanding.

You are to prepare a corrected classified balance sheet. Include the proper headings for each classification as well as titles for any necessary subtotals. Attach a sheet with your (or the groups final) labelled work to earn full credit.

Fernandez Corp. Balance Sheet At December 31, 2020 ($ in thousands) Assets Current Assets: Cash Accounts receivable Allowance for doubtful accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets Investments Raw materials and work-in-process inventory Equipment Accumulated depreciation Patent (net) Total Assets $ 1,250 3,500 (400) 6,000 1,200 11,550 3,000 2,250 15,000 (4,200) ? ? $ 5,200 4,000 100 3,000 12,300 Liabilities & Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Customer deposits on orders placed Total current liabilities Long-term liabilities Bonds payable Interest payable (on bonds) Shareholders' Equity Common stock Retained earnings Total liabilities & shareholders' equity 5,500 200