The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 106,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 756,080 268,080 66,080 132,000 252,080 286,000 106,000 72,080 $1,938,000 $ 221,080 261,080 512,080 86,000 424,080 434,000 $1,938,000 Additional Information: 1. 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 $56,000 but, due to a significant increase in market value, is listed at $132,000. The Increase in the land account was credited to retained earnings. 2. The Investment in equity securities account consists of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long term. However, a $160,000 note requires an Installment payment of $40,000 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the Inventory is $166,000. 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.)
The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 106,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 756,080 268,080 66,080 132,000 252,080 286,000 106,000 72,080 $1,938,000 $ 221,080 261,080 512,080 86,000 424,080 434,000 $1,938,000 Additional Information: 1. 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 $56,000 but, due to a significant increase in market value, is listed at $132,000. The Increase in the land account was credited to retained earnings. 2. The Investment in equity securities account consists of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long term. However, a $160,000 note requires an Installment payment of $40,000 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the Inventory is $166,000. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Current assets:
Total current assets
Investments:
Total investments
Property, plant, and equipment:
Net property, plant, and equipment
Intangible assets:
Total assets
Current liabilities:
Total current liabilities
Long-term liabilities:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Total liabilities
Shareholders' equity:
Liabilities and Shareholders' Equity
Total shareholders' equity
Total liabilities and shareholders' equity
Transcribed Image Text:The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings
Land
Cash
Accounts receivable (net)
Inventory
Machinery
Patent (net)
Investment in equity securities
Total assets
Liabilities and Shareholders' Equity
Accounts payable
Accumulated depreciation
Notes payable
Appreciation of inventory
Common stock (authorized and issued
no par stock)
106,000 shares
Retained earnings
Total liabilities and shareholders' equity
$ 756,000
268,080
66,080
132,080
252,000
286,000
106,000
72,000
$1,938,000
$ 221,000
261,080
512,080
86,080
424,000
434,000
$1,938,000
Additional information:
1. 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 $56,000 but, due to a significant increase in market value, is listed at $132,000. The Increase in the land account
was credited to retained earnings.
2. The Investment in equilty securities account consists of stocks of other corporations and are recorded at cost, $26,000 of which will
be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long term. However, a $160,000 note requires an Installment payment of $40,000 due in the coming year.
4. Inventory is recorded at current resale value. The original cost of the Inventory is $166,000.
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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