Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2014. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2009. The client provides you with the information below.

ALMADEN CORPORATION BALANCE SHEET DECEMBER 31, 2014
Assets				Liabilities
Current assets		$1,886,610		Current liabilities		$967,040
Other assets		5,189,206		Long-term liabilities		1,472,740
				Capital		4,636,036
		$7,075,816				$7,075,816

An analysis of current assets discloses the following.

Cash (restricted in the amount of $301,430 for plant expansion)

$571,770

Investments in land

187,240

Accounts receivable less allowance of $30,150

481,900

Inventories (LIFO flow assumption)

645,700

$1,886,610

Other assets include:

Prepaid expenses

$63,310

Plant and equipment less accumulated depreciation of $1,449,800

4,139,600

Cash surrender value of life insurance policy

84,450

Unamortized bond discount

36,716

Notes receivable (short-term)

163,080

Goodwill

253,890

Land

448,160

$5,189,206

Current liabilities include:

Accounts payable

$511,600

Notes payable (due 2017)

158,140

Estimated income taxes payable

145,970

Premium on common stock

151,330

$967,040

Long-term liabilities include:

Unearned revenue

$491,240

Dividends payable (cash)

200,300

8% bonds payable (due May 1, 2019)

781,200

$1,472,740

Capital includes:

Retained earnings

$2,780,636

Capital stock, par value $10; authorized 200,000 shares, 185,540 shares issued

1,855,400

The supplementary information below is also provided.

1.		On May 1, 2014, the corporation issued at 95.3, $781,200 of bonds to finance plant expansion. The long-term bond agreement provided for the annual payment of interest every May 1. The existing plant was pledged as security for the loan. Use the straight-line method for discount amortization.
2.		The bookkeeper made the following mistakes.
		(a)	In 2012, the ending inventory was overstated by $184,430. The ending inventories for 2013 and 2014 were correctly computed.
		(b)	In 2014, accrued wages in the amount of $227,220 were omitted from the balance sheet, and these expenses were not charged on the income statement.
		(c)	In 2014, a gain of $177,640 (net of tax) on the sale of certain plant assets was credited directly to retained earnings.
3.		A major competitor has introduced a line of products that will compete directly with Almadens primary line, now being produced in a specially designed new plant. Because of manufacturing innovations, the competitors line will be of comparable quality but priced 50% below Almadens line. The competitor announced its new line on January 14, 2015. Almaden indicates that the company will meet the lower prices that are high enough to cover variable manufacturing and selling expenses, but permit recovery of only a portion of fixed costs.
4.		You learned on January 28, 2015, prior to completion of the audit, of heavy damage because of a recent fire to one of Almadens two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail.

Analyze the above information to prepare a corrected balance sheet for Almaden in accordance with proper accounting and reporting principles. Prepare a description of any notes that might need to be prepared. The books are closed and adjustments to income are to be made through retained earnings. (List current assets in order of liquidity. Enter account name only and do not provide descriptive information.)

$4,636,036