Your firm has been engaged to examine the financial statements of Whispering Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Whispering Corporation Balance Sheet December 31, 2020 Assets Liabilities Current assets $1,880,000 Current liabilities $968,000 Other assets 5,244,500 Long-term liabilities 1,445,000 Stockholders' equity 4.711 0 $7,124,500 $7,124,500 An analysis of current assets discloses the following. Cash (restricted in the amount of $295,000 for plant expansion) $565,000 Investments in land 183,000 Accounts receivable less allowance of $30,000 477,000 Inventories (LIFO flow assumption) 655,000 $1,880,000 Other assets include: Prepaid expenses $61,000 Plant and equipment less accumulated depreciation of $1,451,000 4,185,000 Cash surrender value of life insurance policy 86,000 Unamortized bond discount 43,500 Notes receivable (short-term) Goodwill Land 164,000 253,000 452,000 Current liabilities include: Accounts payable $5,244,500 $510,000 Notes payable (due 2023) 160,000 Estimated income taxes payable 148,000 Premium on common stock 150,000 $968,000 Long-term liabilities include: Long-term liabilities include: Unearned revenue Dividends payable (cash) 8% bonds payable (due May 1, 2025) Stockholders' equity includes: Retained earnings Common stock, par value $10; authorized 200,000 shares, 183,000 shares issued $499,000 196,000 750,000 $1,445,000 $2,881,500 1,830,000 $4,711,500 The supplementary information below is also provided. 1. 2. On May 1, 2020, the corporation issued at 94.20, $750,000 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. The bookkeeper made the following mistakes. a. In 2018, the ending inventory was overstated by $180,000. The ending inventories for 2019 and 2020 were correctly computed. b. In 2020, accrued wages in the amount of $224,000 were omitted from the balance sheet, and these expenses were not charged on the income statement. Analyze the above information to prepare a corrected balance sheet for Whispering 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.) WHISPERING CORPORATION Balance Sheet Assets Question 1 of 1 Liabilities and Stockholders' Equity