What issues and/or discrepancies along with the impact on the 2016 year-end Balance Sheet does bullet #4 have?
Dave Wooden started Wooden Corporation in 1998 as a small consulting company specializing in stream improving client 'bottom lines' through the use of cutting edge technology to generate fairly accurate inform improving grocery store displays and related inventory configurations. The company has been very successtur in ation on specific to current consumer trends and opportunities and providing end-results utilizing highly-creative innov each client. Currently, the to some larger, nationally recognized chains. T majority stockholder and and All r Sarah each company provides these services to a multitude of entities ranging from small, local concerns he company itself is a closely held entity with Dave serving as the president along with a handful of other, unrelated smaller investors. Overall company strategy ustomer contact is driven by Dave with daily operational activities being led by Dave's oldest son, Donnie. primary c ng activities (primarily administrative and marketing) are guided by Dave's wife, Sarah. Both Donnie and rvise staffs of approximately five individuals that perform the majority of the day-to-day work-load ic practice) to "take a look" at the some Dave (a long-time friend) has recently reached out to you (a licensed CPA in publi of the financial information of Wooden Corporation for the year ended 2016 Your analysis will result in the preparation, in proper form, of an unaudited Classified Balance Sheet to be used as supporting documentation in an application for a long-term loan to be used for future growth Johnny Gilmer, the internal accountant for Wooden who maintains the company's financial records, has prepared all the tax returns and financial information for the corporation since January 2, 2010. Gilmer provides you with a Recap of Financial Position providing the information listed below: Recap of Financial Position (unaudited) December 31, 2036 Current Assets 501 830 An analysis of Current Assets discloses the Following 106,500o nvestments in Land Accounts Receivable less allowance of $48,.000 Inventories (UFO flow assumption) Other Assets indude 47,073 5,123,49o Buildings less Accumulated Depredation of $1, 506, 310) Cash surrender value of life insurance policy 45,830 Vehicles less Accumulated Depreication of S6R 83) Equipment (less Accumulated Depreciation of $153, 724) Long-term Liabilities owners Equity Total Liabilities and Equity 2,450,465 1,500,000 4,551, 6s 8 501830 Current Labilities include Notes payable (due 2019) Income Taxes payable Premium on Common Stock 1,682,213 150,000 Totals 2450465 Leng-term Liabilities and Equity include: Retained Earnings Capital Stock ($10 par, 200,000 authonized, 1s0,000 issued 4,551365 1.500.000 Totals
