The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an inexperienced accountant and submitted to you for review: Mikeska Company Balance Sheet as of December 31, 20X1 ($ in thousands) Assets Fixed assets—tangible Land $ 500 Buildings and equipment 200 Less: Reserve for depreciation (50 ) $ 650 Factory supplies 20 Current assets Inventory 163 Accounts receivable 102 Cash 68 333 Fixed assets—intangibles Patents 51 Goodwill 49 100 Deferred charges Discount on bonds payable 12 Returnable containers 32 44 Total assets $ 1,147 Liabilities Current liabilities Accounts payable 140 Allowance for doubtful accounts 7 Wages payable 195 $ 342 Long-term liabilities Bonds payable 400 Reserve for contingencies 50 450 Equity Capital stock, $10 par, 5,000 shares issued and outstanding 50 Capital surplus 75 Earned surplus 270 Dividends paid (40 ) 355 Total liabilities $ 1,147 Required: Prepare a classified balance sheet. Make any necessary corrections.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an inexperienced accountant and submitted to you for review:

 

Mikeska Company
Balance Sheet as of December 31, 20X1
($ in thousands)
Assets            
Fixed assets—tangible            
Land $ 500        
Buildings and equipment   200        
Less: Reserve for depreciation   (50 ) $ 650  
Factory supplies         20  
Current assets            
Inventory   163        
Accounts receivable   102        
Cash   68     333  
Fixed assets—intangibles            
Patents   51        
Goodwill   49     100  
Deferred charges            
Discount on bonds payable   12        
Returnable containers   32     44  
Total assets       $ 1,147  
Liabilities            
Current liabilities            
Accounts payable   140        
Allowance for doubtful accounts   7        
Wages payable   195   $ 342  
Long-term liabilities            
Bonds payable   400        
Reserve for contingencies   50     450  
Equity            
Capital stock, $10 par, 5,000 shares issued and outstanding   50        
Capital surplus   75        
Earned surplus   270        
Dividends paid   (40 )   355  
Total liabilities       $ 1,147  
 

 

Required:
Prepare a classified balance sheet. Make any necessary corrections. (Enter your answers in thousands. Amounts to be deducted should be entered with a minus sign.)

Assets:
Current assets:
Cash
Accounts receivable
Inventory
Factory supplies
Property, plant, and equipment:
Land
Buildings and equipment
Less: Accumulated depreciation
Intangible assets:
Goodwill
Patents
Other assets:
Returnable containers
Total assets
Liabilities:
Current liabilities:
Accounts payable
Wages payable
Long-term liabilities:
Bonds payable
Discount on bonds payable
Liability for contingencies
Total liabilities
Equity:
Capital stock
Additional paid-in capital
Balance Sheet
As of December 31, 20X1
($ in thousands)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
S
69
68
163
20
500
200
(50)
49
51
140
195
400
(12)
50
75
$
$
$
$
$
251
650
100
32
1,033
335
388
50
773
125
125
898
Transcribed Image Text:Assets: Current assets: Cash Accounts receivable Inventory Factory supplies Property, plant, and equipment: Land Buildings and equipment Less: Accumulated depreciation Intangible assets: Goodwill Patents Other assets: Returnable containers Total assets Liabilities: Current liabilities: Accounts payable Wages payable Long-term liabilities: Bonds payable Discount on bonds payable Liability for contingencies Total liabilities Equity: Capital stock Additional paid-in capital Balance Sheet As of December 31, 20X1 ($ in thousands) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity S 69 68 163 20 500 200 (50) 49 51 140 195 400 (12) 50 75 $ $ $ $ $ 251 650 100 32 1,033 335 388 50 773 125 125 898
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