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, 2019.

Stephen King Corporation

BALANCE SHEET

December 31, 2019

Current assets $ 435,000

Investments 640,000

Property, plant, and equipment 1,720,000

Intangible assets 305,000

$3,100,000

Current liabilities 330,000

Long-term liabilities 1,000,000

Stockholders' equity 1,770,000

$3,100,000

Consider the following information:

1.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.

2.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 funk $250,000.The cost and fair value of investments in common stock are the same.

3.Property, plant, and equipment includes:buildings $1,040,000 less accumulated depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000; land $500,000; and land held for future use $270,000.

4.Intangible assets include:a franchise $165,000; goodwill $100,000; and discount on bonds payable $40,000.

5.Current liabilities include:accounts payable $90,000; notes payable - short term $80,000 and long-term $120,000; and taxes payable $40,000.

6.Long-term liabilities are compose solely of 10% bonds payable due in 2030.

7.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 100,000 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.

From this information make a classified balance sheet.