Shamrock Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. SHAMROCK COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $242,000 Accounts receivable (net) 352,000 Inventory (lower-of-average-cost-or-market) 413,000 Equity investments (marketable)-at cost (fair value $132,000) 152,000 Property, plant, and equipment Buildings (net) 582,000 Equipment (net) 172,000 Land held for future use 187,000 Intangible assets Goodwill 92,000 Cash surrender value of life insurance 102,000 Prepaid expenses 24,000 Current liabilities Accounts payable 147,000 Notes payable (due next year) 137,000 Pension obligation 94,000 Rent payable 61,000 Premium on bonds payable 65,000 Long-term liabilities Bonds payable 512,000 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 302,000 302,000 Additional paid-in capital 172,000 Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $172,000 and for the equipment, $117,000. The allowance for doubtful accounts has a balance of $29,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

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

SHAMROCK COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020
Current assets
Cash		$242,000
Accounts receivable (net)		352,000
Inventory (lower-of-average-cost-or-market)		413,000
Equity investments (marketable)-at cost (fair value $132,000)		152,000
Property, plant, and equipment
Buildings (net)		582,000
Equipment (net)		172,000
Land held for future use		187,000
Intangible assets
Goodwill		92,000
Cash surrender value of life insurance		102,000
Prepaid expenses		24,000
Current liabilities
Accounts payable		147,000
Notes payable (due next year)		137,000
Pension obligation		94,000
Rent payable		61,000
Premium on bonds payable		65,000
Long-term liabilities
Bonds payable		512,000
Stockholders’ equity
Common stock, $1.00 par, authorized 400,000 shares, issued 302,000		302,000
Additional paid-in capital		172,000
Retained earnings		?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $172,000 and for the equipment, $117,000. The allowance for doubtful accounts has a balance of $29,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

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