Your firm has beerrengased to examine the financial statements of Pina Corporation for the year 2025 . The bookkeeper whio maintains the financial records has prepared all the unaudited financial statements for the corporationsince its organization on January 2. 2020. The client pcovides you with the following information. Other assets include: Prepaid expenses Plant and equipment less accumulated depreciation of $1,441,000 Cash surrender value of life insurance policy Unamortized bond discount Notes receivable (short-term) Goodwill Land Current liabilities include: Accounts payabie Notes payable (due 2028) Estimated income taxes payable Premium on common stock Long-term liabilities include: Unearned revenue Dividends payable (cash) $486,000204,000780,000$1,470,000 Stockholders' equity includes: Retained earnings $2.838,6601.830.000$4,668,660 1. On May 1, 2025, the corporation issued at 95.30,$780,000 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. 2. The bookkeeper made the following mistakes. a. In 2023, the ending inventory was overstated by $181,000. The ending inventories for 2024 and 2025 were correctly computed b. In 2025 , accrued wages in the amount of $228.000 were omitted from the balance sheet, and these expenses were not charged on the income statement. c. In 2025, a gain of $172,000 (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 Pina's primary line, now being produced in a specially designed new plant. Because of manutacturing innovations, the competitor's line will be of comparable quality but priced 50% below Pina's line. The competitor announced its new fine on January 14, 2026. Pina indicates that the company will meet the lower prices that are high enough to cover variable manutacturing and selling expenses, but permit recovery of only a portion of fixed costs. 4. You learned on January 28.2026, prior to completion of the audit, of heavy daraage because of a recent fre to one of Pina's 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 Pina in accordance with proper accounting and reporting principles Prepare a description of amy notes that might need to be prepared. The books are closed and adjustments to income are to be made throush retained earnings. (Lht Current Assets in order of liquldiby) Liabilities and Stockholders' Equity 5 5 5 Your firm has beerrengased to examine the financial statements of Pina Corporation for the year 2025 . The bookkeeper whio maintains the financial records has prepared all the unaudited financial statements for the corporationsince its organization on January 2. 2020. The client pcovides you with the following information. Other assets include: Prepaid expenses Plant and equipment less accumulated depreciation of $1,441,000 Cash surrender value of life insurance policy Unamortized bond discount Notes receivable (short-term) Goodwill Land Current liabilities include: Accounts payabie Notes payable (due 2028) Estimated income taxes payable Premium on common stock Long-term liabilities include: Unearned revenue Dividends payable (cash) $486,000204,000780,000$1,470,000 Stockholders' equity includes: Retained earnings $2.838,6601.830.000$4,668,660 1. On May 1, 2025, the corporation issued at 95.30,$780,000 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. 2. The bookkeeper made the following mistakes. a. In 2023, the ending inventory was overstated by $181,000. The ending inventories for 2024 and 2025 were correctly computed b. In 2025 , accrued wages in the amount of $228.000 were omitted from the balance sheet, and these expenses were not charged on the income statement. c. In 2025, a gain of $172,000 (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 Pina's primary line, now being produced in a specially designed new plant. Because of manutacturing innovations, the competitor's line will be of comparable quality but priced 50% below Pina's line. The competitor announced its new fine on January 14, 2026. Pina indicates that the company will meet the lower prices that are high enough to cover variable manutacturing and selling expenses, but permit recovery of only a portion of fixed costs. 4. You learned on January 28.2026, prior to completion of the audit, of heavy daraage because of a recent fre to one of Pina's 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 Pina in accordance with proper accounting and reporting principles Prepare a description of amy notes that might need to be prepared. The books are closed and adjustments to income are to be made throush retained earnings. (Lht Current Assets in order of liquldiby) Liabilities and Stockholders' Equity 5 5 5