Day 7 (3) The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings $ 757,000 Land 271,000 Cash 67,000 Accounts receivable (net) 134,000 Inventory 254,000 Machinery 287,000 Patent (net) 107,000 Investment in equity securities 74,000 Total assets $ 1,951,000 Liabilities and Shareholders' Equity Accounts payable $ 222,000 Accumulated depreciation 262,000 Notes payable 514,000 Appreciation of inventory 87,000 Common stock (authorized and issued 107,000 shares of no par stock) 428,000 Retained earnings 438,000 Total liabilities and shareholders' equity $ 1,951,000 Additional information: The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $57,000 but, due to a significant increase in market value, is listed at $134,000. The increase in the land account was credited to retained earnings. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $27,000 of which will be sold in the coming year. The remainder will be held indefinitely. Notes payable are all long term. However, a $170,000 note requires an installment payment of $42,500 due in the coming year. Inventory is recorded at current resale value. The original cost of the inventory is $167,000. Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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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Day 7 (3)

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings	$	757,000
Land		271,000
Cash		67,000
Accounts receivable (net)		134,000
Inventory		254,000
Machinery		287,000
Patent (net)		107,000
Investment in equity securities		74,000
Total assets	$	1,951,000
Liabilities and Shareholders' Equity
Accounts payable	$	222,000
Accumulated depreciation		262,000
Notes payable		514,000
Appreciation of inventory		87,000
Common stock (authorized and issued 107,000 shares of no par stock)		428,000
Retained earnings		438,000
Total liabilities and shareholders' equity	$	1,951,000

Additional information:

The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $57,000 but, due to a significant increase in market value, is listed at $134,000. The increase in the land account was credited to retained earnings.
The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $27,000 of which will be sold in the coming year. The remainder will be held indefinitely.
Notes payable are all long term. However, a $170,000 note requires an installment payment of $42,500 due in the coming year.
Inventory is recorded at current resale value. The original cost of the inventory is $167,000.

Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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