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You have been asked to assist the chief accountant of the Stephen King Corporation in the preparation of a balance sheet. Presented below is the

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You have been asked to assist the chief accountant of the Stephen King Corporation in the preparation of a balance sheet. Presented below is the balance sheet of Stephen King Corporation for the current year, 2011. Consider the following information: The current assets section includes: cash $100,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned revenue $5,000. The cash balance is composed of $114,000, less a bank overdraft of $14,000. Inventories are stated on the lower of the FIFO cost or market. The investments section includes: the cash surrender value of a life insurance contract $40,000; investment in common stock, short-term (trading) $80,000 and long-term (available-for-sale) $270.000; and bond sinking fund $250.000. The cost and fair value of investments in common stock are the same. Property, plant, and equipment includes: buildings $1040,000 less accumulated depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000; land $500,000; and land held for future use $270,000. Intangible assets include: a franchise $165,000; goodwill $100,000; and discount on bonds payable Current liabilities include: accounts payable $90,000; notes payable - short term $80,000 and long- term $120,000; and taxes payable $40,000. Long-term liabilities are compose solely of 10% bonds payable due in 2020. Stockholders' equity has: preferred stock, no par value, authorized 200,000 shares, issued 70,000 shares for $450,000; and common stock, $1.00 par value, authorized 400,000 shares, issued $10.000 shares at an average price of $10. In addition, the corporation has retained earnings of $320,000. The company's management does not elect to use the fair value option for any of its financial assets or liabilities. Prepare a Classified balance sheet

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