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Presented below is the balance sheet of Ivanhoe Corporation as of December 31, 2017. IVANHOE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable $ 122,580 1,640,000 314,680 950,000 172,580

Presented below is the balance sheet of Ivanhoe Corporation as of December 31, 2017. IVANHOE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable $ 122,580 1,640,000 314,680 950,000 172,580

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 5-4 Presented below is the balance sheet of Ivanhoe Corporation as of December 31, 2017. IVANHOE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) Noncontrolling interest Appreciation capital (Note 1) Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings $ 122,580 1,640,000 314,680 950,000 172,580 89,580 178,480 72,580 140,580 $3,681,060 $ 602,580 1,152,580 805,580 57,580 572,580
Transcribed Image Text:Problem 5-4 Presented below is the balance sheet of Ivanhoe Corporation as of December 31, 2017. IVANHOE CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) Noncontrolling interest Appreciation capital (Note 1) Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings $ 122,580 1,640,000 314,680 950,000 172,580 89,580 178,480 72,580 140,580 $3,681,060 $ 602,580 1,152,580 805,580 57,580 572,580
Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $572,580. Depreciation has been recorded based on cost. 572,580 77,580 412,580 $3,681,060 Note 2: Goodwill in the amount of $122,580 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $122,580 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity.) IVANHOE CORPORATION Balance Sheet Assets
Transcribed Image Text:Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $572,580. Depreciation has been recorded based on cost. 572,580 77,580 412,580 $3,681,060 Note 2: Goodwill in the amount of $122,580 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $122,580 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity.) IVANHOE CORPORATION Balance Sheet Assets
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