Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below
Question:
Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2014 | |
Current assets | |
Cash | $233,990 |
Accounts receivable (net) | 343,990 |
Inventory (lower-of-average-cost-or-market) | 404,990 |
Equity investments (trading)-at cost (fair value $124,430) | 144,430 |
Property, plant, and equipment | |
Buildings (net) | 574,430 |
Equipment (net) | 164,430 |
Land held for future use | 179,430 |
Intangible assets | |
Goodwill | 83,990 |
Cash surrender value of life insurance | 93,990 |
Prepaid expenses | 15,990 |
Current liabilities | |
Accounts payable | 139,430 |
Notes payable (due next year) | 128,990 |
Pension obligation | 86,430 |
Rent payable | 52,990 |
Premium on bonds payable | 56,990 |
Long-term liabilities | |
Bonds payable | 504,430 |
Stockholders equity | |
Common stock, $1.00 par, authorized400,000 shares, issued293,990 | 293,990 |
Additional paid-in capital | 163,990 |
Retained earnings | ? |
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $163,990and for the equipment, $108,990. The allowance for doubtful accounts has a balance of $20,990. 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.)
Uhura Company Balance Sheet December 31, 2014 |
Assets |
$ | |
$ | |
: | ||
$ | |
$ | |
: | ||
: | ||
$ | ||
Liabilities and Stockholders' Equity | ||
$ | |
$ | |
$ | |
: | $ | |
$ |
Debit | Credit | |
Cash | $200,680 | |
Sales | $8,103,570 | |
Debt Investments (trading) (cost, $145,000) | 156,570 | |
Cost of Goods Sold | 4,803,570 | |
Debt Investments (long-term) | 302,680 | |
Equity Investments (long-term) | 280,680 | |
Notes Payable (short-term) | 93,570 | |
Accounts Payable | 458,570 | |
Selling Expenses | 2,003,570 | |
Investment Revenue | 64,420 | |
Land | 260,000 | |
Buildings | 1,043,680 | |
Dividends Payable | 139,680 | |
Accrued Liabilities | 99,570 | |
Accounts Receivable | 438,570 | |
Accumulated Depreciation-Buildings | 152,000 | |
Allowance for Doubtful Accounts | 28,570 | |
Administrative Expenses | 901,420 | |
Interest Expense | 212,420 | |
Inventory | 600,680 | |
Gain (extraordinary) | 81,420 | |
Notes Payable (long-term) | 903,680 | |
Equipment | 603,570 | |
Bonds Payable | 1,003,680 | |
Accumulated Depreciation-Equipment | 60,000 | |
Franchises | 160,000 | |
Common Stock ($5 par) | 1,003,570 | |
Treasury Stock | 194,570 | |
Patents | 195,000 | |
Retained Earnings | 81,680 | |
Paid-in Capital in Excess of Par | 83,680 | |
Totals | $12,357,660 | $12,357,660 |
Scott Butler Corporation Balance Sheet December 31, 2014 |
Assets |
$ | |
$ | |
: | ||
$ | |
: | ||
: | ||
$ | ||
Liabilities and Stockholders' Equity | ||
$ | |
$ | |
$ | |
: | |
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SARGENT CORPORATION BALANCE SHEET DECEMBER 31, 2014 | |||
Current assets | $487,710 | Current liabilities | $382,710 |
Investments | 642,710 | Long-term liabilities | 1,002,710 |
Property, plant, and equipment | 1,722,710 | Stockholders equity | 1,772,710 |
Intangible assets | 305,000 | $3,158,130 | |
$3,158,130 |
1. | The current assets section includes cash $152,710, accounts receivable $172,710 less $12,710 for allowance for doubtful accounts, inventories $182,710, and unearned rent revenue $7,710. 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 $42,710; investments in common stock, short-term (trading) $82,710 and long-term (available-for-sale) $272,710; and bond sinking fund $244,580. The cost and fair value of investments in common stock are the same. |
3. | Property, plant, and equipment includes buildings $1,042,710 less accumulated depreciation $362,710; equipment $452,710 less accumulated depreciation $182,710; land $502,710; and land held for future use $270,000. |
4. | Intangible assets include a franchise $167,710; goodwill $102,710; and discount on bonds payable $34,580. |
5. | Current liabilities include accounts payable $142,710; notes payable-short-term $82,710 and long-term $122,710; and income taxes payable $34,580. |
6. | Long-term liabilities are composed solely of7% bonds payable due 2022. |
7. | Stockholders equity has preferred stock, no par value, authorized200,000 shares, issued72,710 shares for $436,260; and common stock, $1.00 par value, authorized400,000 shares, issued102,710 shares at an average price of $10. In addition, the corporation has retained earnings of $309,350. |
SARGENT CORPORATION Balance Sheet December 31, 2014 |
Assets |
$ | |
$ | |
: | ||
$ | |
: | ||
: | |||
$ | ||
Liabilities and Stockholders' Equity | ||
$ | |
$ | |
$ | |
: | |||
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Show List of Accounts |
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso