HW-3 Information The following Balance Sheet is available. Unfortunately, the company's accountant barely passed accounting and may have jumbled accounts and debts and credits. Balance Sheet December 31, 2017 Current assets Investmentments Property plant & equipment Intangible assets Total A. Current Assets include Cash Accounts Receivable Allowance for bad debts Unearned rent revenue Inventory-lower of cost or NRV Footnotes: Details of balance sheet categories B. Investments include" Cash surrender value life insurance Investments in stock - short-term Investments in stock-long-term Bond sinking fund *the cost and the fair value of the investments in stock are equal. 485,000 640,000 1,720,000 305,000 3,150,000 C. Property plant & equipment Buildings accumulated depreciation - buildin Equipment Accumulated depreciation-equipm Land Land held for future use 150,000 170,000 10,000 5,000 ?? 40,000 80,000 270,000 250,000 1,040,000 360,000 450,000 Current liabilities Long-term liabilities Stockholder's equity 180,000 500,000 270,000 Total D. Intangible Assets Fanchise Goodwill Discount on bond payable E. Current Liabilities Accounts payable Notes payable - short-term Notes payable-long-term Income taxes payable F. Long-term liabilties Bonds payable 7% 380,000 1,000,000 1,770,000 3,150,000 165,000 100,000 40,000 G. Stockholders' equity** Preferred stock Common stock 140,000 80,000 120,000 40,000 1,000,000 450,000 1,000,000 320,000 Retained earnings the preferred stock has no par value with 200,000 shares authorized and 70,000 shares issued The common stock has a $1 par value, with 400,000 shares authorized and 100,000 shares issued at an average price of $10 per share. Note: assume all accounts have correct 'normal' balances. In other words, if an account is supposed to have a debit balance, it does have a debit balance even if it's listed in the incorrect section. Chart of Accounts Accounts payable Accounts Receivable Accumulated depreciation - building Accumulated depreciation - equipment Allowance for bad debts Bond sinking fund Bonds payable 7% Buildings Cash Cash surrender value life insurance Common stock Discount on bond payable Equipment Fanchise Goodwill Income taxes payable Inventory Investments in stock - long-term Investments in stock - short-term Land Land held for future use Notes payable -long-term Notes payable-short-term Paid in capital - common stock Preferred stock Retained earnings Unearned rent revenue

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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Required: Prepare a Balance sheet in good form (always start with the top row in each section) Put into these categories: Current Assets, Long-Term Investments, PPE, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Stockholders Equity. Also label as debit or credit. The Correct total amount for each category is at the top.

HW-3 Information
The following Balance Sheet is available. Unfortunately, the company's accountant
barely passed accounting and may have jumbled accounts and debts and credits.
Balance Sheet
December 31, 2017
Current assets
Investmentments
Property plant & equipment
Intangible assets
Total
Accounts Receivable
Allowance for bad debts
Unearned rent revenue
Inventory-lower of cost or NRV
B. Investments include"
Cash surrender value life insurance
Investments in stock -short-term
Investments in stock-long-term
Bond sinking fund
*the cost and the fair value of the
investments in stock are equal.
485,000
640,000
1,720,000
305,000
3,150,000
Footnotes: Details of balance sheet categories
A. Current Assets include
Cash
C. Property plant & equipment
Buildings
accumulated depreciation - buildin
Equipment
Accumulated depreciation-equipm
Land
Land held for future use
150,000
170,000
10,000
5,000
??
40,000
80,000
270,000
250,000
1,040,000
360,000
450,000
Current liabilities
Long-term liabilities
Stockholder's equity
180,000
500,000
270,000
Total
D. Intangible Assets
Fanchise
Goodwill
Discount on bond payable
E. Current Liabilities
Accounts payable
Notes payable-short-term
Notes payable - long-term
Income taxes payable
F. Long-term liabilties
Bonds payable 7%
380,000
1,000,000
1,770,000
3,150,000
165,000
100,000
40,000
140,000
80,000
120,000
40,000
1,000,000
G. Stockholders' equity**
Preferred stock
Common stock
Retained earnings
320,000
**the preferred stook has no par value with
200,000 shares authorized and 70,000 shares issued
The common stock has a $1 par value, with 400,000
shares authorized and 100,000 shares issued at an
average price of $10 per share.
450,000
1,000,000
Note: assume all accounts have correct'normal' balances. In other words, if an account is
supposed to have a debit balance, it does have a debit balance even if it's listed in the
incorrect section.
Chart of Accounts
Accounts payable
Accounts Receivable
Accumulated depreciation - building
Accumulated depreciation -equipment
Allowance for bad debts
Bond sinking fund
Bonds payable 7%
Buildings
Cash
Cash surrender value life insurance
Common stock
Discount on bond payable
Equipment
Fanchise
Goodwill
Income taxes payable
Inventory
Investments in stock -long-term
Investments in stock -short-term
Land
Land held for future use
Notes payable-long-term
Notes payable - short-term
Paid in capital - common stock
Preferred stock
Retained earnings
Unearned rent revenue
Transcribed Image Text:HW-3 Information The following Balance Sheet is available. Unfortunately, the company's accountant barely passed accounting and may have jumbled accounts and debts and credits. Balance Sheet December 31, 2017 Current assets Investmentments Property plant & equipment Intangible assets Total Accounts Receivable Allowance for bad debts Unearned rent revenue Inventory-lower of cost or NRV B. Investments include" Cash surrender value life insurance Investments in stock -short-term Investments in stock-long-term Bond sinking fund *the cost and the fair value of the investments in stock are equal. 485,000 640,000 1,720,000 305,000 3,150,000 Footnotes: Details of balance sheet categories A. Current Assets include Cash C. Property plant & equipment Buildings accumulated depreciation - buildin Equipment Accumulated depreciation-equipm Land Land held for future use 150,000 170,000 10,000 5,000 ?? 40,000 80,000 270,000 250,000 1,040,000 360,000 450,000 Current liabilities Long-term liabilities Stockholder's equity 180,000 500,000 270,000 Total D. Intangible Assets Fanchise Goodwill Discount on bond payable E. Current Liabilities Accounts payable Notes payable-short-term Notes payable - long-term Income taxes payable F. Long-term liabilties Bonds payable 7% 380,000 1,000,000 1,770,000 3,150,000 165,000 100,000 40,000 140,000 80,000 120,000 40,000 1,000,000 G. Stockholders' equity** Preferred stock Common stock Retained earnings 320,000 **the preferred stook has no par value with 200,000 shares authorized and 70,000 shares issued The common stock has a $1 par value, with 400,000 shares authorized and 100,000 shares issued at an average price of $10 per share. 450,000 1,000,000 Note: assume all accounts have correct'normal' balances. In other words, if an account is supposed to have a debit balance, it does have a debit balance even if it's listed in the incorrect section. Chart of Accounts Accounts payable Accounts Receivable Accumulated depreciation - building Accumulated depreciation -equipment Allowance for bad debts Bond sinking fund Bonds payable 7% Buildings Cash Cash surrender value life insurance Common stock Discount on bond payable Equipment Fanchise Goodwill Income taxes payable Inventory Investments in stock -long-term Investments in stock -short-term Land Land held for future use Notes payable-long-term Notes payable - short-term Paid in capital - common stock Preferred stock Retained earnings Unearned rent revenue
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