Novak Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. NOVAK COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $241,500 Accounts receivable (net) 351,500 Inventory (lower-of-average-cost-or-market) 412,500 Equity investments (marketable)-at cost (fair value $131,500) 151,500 Property, plant, and equipment Buildings (net) 581,500 Equipment (net) 171,500 Land held for future use 186,500 Intangible assets Goodwill 91,500 Cash surrender value of life insurance 101,500 Prepaid expenses 23,500 Current liabilities Accounts payable 146,500 Notes payable (due next year) 136,500 Pension obligation 93,500 Rent payable 60,500 Premium on bonds payable 64,500 Long-term liabilities Bonds payable 511,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 301,500 301,500 Additional paid-in capital 171,500 Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $171,500 and for the equipment, $116,500. The allowance for doubtful accounts has a balance of $28,500. The pension obligation is considered a long-term liability

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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Novak Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion.

NOVAK COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020
Current assets
Cash		$241,500
Accounts receivable (net)		351,500
Inventory (lower-of-average-cost-or-market)		412,500
Equity investments (marketable)-at cost (fair value $131,500)		151,500
Property, plant, and equipment
Buildings (net)		581,500
Equipment (net)		171,500
Land held for future use		186,500
Intangible assets
Goodwill		91,500
Cash surrender value of life insurance		101,500
Prepaid expenses		23,500
Current liabilities
Accounts payable		146,500
Notes payable (due next year)		136,500
Pension obligation		93,500
Rent payable		60,500
Premium on bonds payable		64,500
Long-term liabilities
Bonds payable		511,500
Stockholders’ equity
Common stock, $1.00 par, authorized 400,000 shares, issued 301,500		301,500
Additional paid-in capital		171,500
Retained earnings		?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $171,500 and for the equipment, $116,500. The allowance for doubtful accounts has a balance of $28,500. The pension obligation is considered a long-term liability.

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