Brandt Company Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Total assets Sheet of Balances for Year Ended December 31, 2019 Current liabilities Long-term liabilities Contributed capital Unrealized capital Retained earnings Total equities $ 44,300 13,600 123,500 7,700 13,600 $202,700 $ 66,600 24,100 17,000 22,500 72,500 $202,700 The following information is also available: 1. Current assets include cash, $3,800; accounts rececivable, $18,500; notes rececivable (maturity date July 1, 2024), S10,000; and land, S12,000. 2. Long term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2022, maturity date. 3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600. 4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and treasury stock that cost S1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2020), S2,900; sinking fund for bond retirement, S7,000; and trademarks that cost $3,700 and are not impaired. 6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024), $40,000; and accrued income taxes payable, $7,200. 7. Long term liabilities include accrued wages, S4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2020), S20,000. 8. Contributed capital includes common stock (S5 par), s11,000; and preferred stock (S100 par), S6,000. (continued) Cpyie Conpaga Lag R Reet. Me e opiad t.ic hok or pur. Dao decelc ig tad paty om may be rponed te kndi oapur. Ele de ypd m d y a te lkgpee. Cnpa Laning rran ge i abgrighe i Chapter 4 The Balance Sheet and the Stotement of Shoreholders' Equity 9. Unrealized capital includes premium on bonds payable, S4,300; additional paid-in capital on preferred stock, S2,400; additional paid-in capital on common stock, S14,700; and accumulated other comprehensive income, S1,100. 10. Retained carnings includes unrestricted retained carnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and S13,000, respectively.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Brandt Company presents the following December 31, 2019, balance sheet Based on the preceding information, prepare a properly classified December 31, 2019, balance sheet for Brandt.

Brandt Company
Current assets
Long-term investments
Property, plant, and equipment
Intangible assets
Other assets
Total assets
Sheet of Balances for Year Ended December 31, 2019
Current liabilities
Long-term liabilities
Contributed capital
Unrealized capital
Retained earnings
Total equities
$ 44,300
13,600
123,500
7,700
13,600
$202,700
$ 66,600
24,100
17,000
22,500
72,500
$202,700
The following information is also available:
1. Current assets include cash, $3,800; accounts rececivable, $18,500; notes rececivable (maturity date July 1,
2024), S10,000; and land, S12,000.
2. Long term investments include a $4,600 investment in available-for-sale securities that are expected to be sold
in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December
31, 2022, maturity date.
3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment
costing $29,600.
4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and
treasury stock that cost S1,800.
5. Other assets include prepaid insurance (which expires on November 30, 2020), S2,900; sinking fund for bond
retirement, S7,000; and trademarks that cost $3,700 and are not impaired.
6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024),
$40,000; and accrued income taxes payable, $7,200.
7. Long term liabilities include accrued wages, S4,100; and mortgage payable (which is due in five equal annual
payments starting December 31, 2020), S20,000.
8. Contributed capital includes common stock (S5 par), s11,000; and preferred stock (S100 par), S6,000.
(continued)
Cpyie Conpaga Lag R Reet. Me e opiad t.ic hok or pur. Dao decelc ig tad paty om may be rponed te kndi oapur.
Ele de ypd m d y a te lkgpee. Cnpa Laning rran ge
i abgrighe i
Chapter 4
The Balance Sheet and the Stotement of Shoreholders' Equity
9. Unrealized capital includes premium on bonds payable, S4,300; additional paid-in capital on preferred stock,
S2,400; additional paid-in capital on common stock, S14,700; and accumulated other comprehensive income,
S1,100.
10. Retained carnings includes unrestricted retained carnings, $37,800; allowance for doubtful accounts, $700;
and accumulated depreciation on buildings and equipment of $21,000 and S13,000, respectively.
Transcribed Image Text:Brandt Company Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Total assets Sheet of Balances for Year Ended December 31, 2019 Current liabilities Long-term liabilities Contributed capital Unrealized capital Retained earnings Total equities $ 44,300 13,600 123,500 7,700 13,600 $202,700 $ 66,600 24,100 17,000 22,500 72,500 $202,700 The following information is also available: 1. Current assets include cash, $3,800; accounts rececivable, $18,500; notes rececivable (maturity date July 1, 2024), S10,000; and land, S12,000. 2. Long term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2022, maturity date. 3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600. 4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and treasury stock that cost S1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2020), S2,900; sinking fund for bond retirement, S7,000; and trademarks that cost $3,700 and are not impaired. 6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024), $40,000; and accrued income taxes payable, $7,200. 7. Long term liabilities include accrued wages, S4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2020), S20,000. 8. Contributed capital includes common stock (S5 par), s11,000; and preferred stock (S100 par), S6,000. (continued) Cpyie Conpaga Lag R Reet. Me e opiad t.ic hok or pur. Dao decelc ig tad paty om may be rponed te kndi oapur. Ele de ypd m d y a te lkgpee. Cnpa Laning rran ge i abgrighe i Chapter 4 The Balance Sheet and the Stotement of Shoreholders' Equity 9. Unrealized capital includes premium on bonds payable, S4,300; additional paid-in capital on preferred stock, S2,400; additional paid-in capital on common stock, S14,700; and accumulated other comprehensive income, S1,100. 10. Retained carnings includes unrestricted retained carnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and S13,000, respectively.
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