The following balance sheet was prepared for Jared Corporation as of December 31, 2013.
Jared Corporation
Balance Sheet
December 31, 2013

The following additional information relates to the December 31, 2013, balance sheet.
(a) Cash includes $4,000 that has been restricted to the purchase of manufacturing equipment (a noncurrent asset).
(b) Investment securities include $2,750 of stock that was purchased in order to give the company significant ownership and a seat on the board of directors of a major supplier.
(c) Other current assets include a $4,000 advance to the president of the company. No due date has been set.
(d) Long-term liabilities include bonds payable of $10,000. Of this amount, $2,500 represents bonds scheduled to be redeemed in 2014.
(e) Long-term liabilities also include a $7,000 bank loan. On May 15, the loan will become due on demand.
(f) On December 21, dividends in the amount of $15,000 were declared to be paid to shareholders of record on January 25. These dividends have not been reflected in the financial statements.
(g) Cash in the amount of $19,000 has been placed in a restricted fund for the redemption of preferred stock in 2014. Both the cash and the stock have been removed from the balance sheet.
(h) Property, plant, and equipment includes land costing $8,000 that is being held for investment purposes and that is scheduled to be sold in 2014. Based on the information provided, prepare a corrected balance sheet.

Transcribed Image Text:

Assets Liabilities and Owners' Equity Current assets: Current liabilities $ 3,400 2,000 $ 5,400 32,750 $ 38,150 Cash ..12,500 Accounts payable Other current liabilities Total current liabilities Long term liabilities Total liabilities Accounts receivable, net 21,350 31,000 14 87,050 Other current assets Total current assets Liabilities and Owners' Equity Noncurrent assets: Owners' equity: Property, plant, and equipment, net Treasury stock 64,800 4.500 13,600 $ 82,900 $169.950 Common stock Retained eamings Total owners' equity 50,000 81,800 $131,800 Other noncurrent assets Total noncurrent assets Total assets Total liabilities and owners' equity