Balance sheet : Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision. The components of balance sheet are assets, liabilities and shareholders’ equity. To Prepare: The balance sheet with given additional information and rectify its errors.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I need help with this financial accounting problem using proper accounting guidelines.

Elm Corp. began using the allowance method in 2020. On January 1, 2020, Elm had a $4,000 balance in the accounts receivable account and a zero balance in the allowance for doubtful accounts. During 2020, Elm provided $30,000 of services on account. The company collected $26,000 in cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. What is the net realizable value of Elm's accounts receivable as of December 31, 2020? a. $8,000 b. $4,900 c. $7,100 d. $900

What is the amount of the gain or loss on disposal of the fixed asset?

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Answer 6

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)

Conclusion

Therefore, total assets as well as total liabilities and shareholder’s equity of Corporation H as on December 31, 2016 is $1,455,000.

Answer 7

Chapter 3, Problem 3.7P

To determine

Balance sheet:

Balance sheet is the snapshot which shows the financial position of the business on a particular date. It provides the users of the financial statement to make effective decision.

The components of balance sheet are assets, liabilities and shareholders’ equity.

To Prepare: The balance sheet with given additional information and rectify its errors.

Answer 8

Expert Solution & Answer

Explanation of Solution

Prepare a corrected balance sheet for Corporation H at December 31, 2016 as follows:

Corporation H
Balance Sheet
December 31, 2016
Assets
Current assets:	Amount ($)	Amount ($)
Cash	60,000
Marketable securities (net) (f)	20,000
Accounts receivable	120,000
Inventories (g)	160,000
Total current assets		360,000
Investments:
Marketable securities (a)	40,000
Land held for sale (b)	50,000
Total investments		90,000
Property, plant and equipment:
Land (c)	130,000
Buildings	750,000
Machinery	280,000
Less: Accumulated depreciation	(255,000)
Net property, plant and equipment		905,000
Intangible assets:
Patent (net)		100,000
Total assets		1,455,000

Liabilities and shareholders’ Equity
Current liabilities:
Accounts payable		215,000
Current maturities of long-term debt (h)		25,000
Total current liabilities		240,000
Long-term liabilities:
Notes payable (d)		475,000
Shareholders’ equity:
Common stock	430,000
Retained earnings (e)	310,000
Total shareholders’ equity		740,000
Total liabilities and shareholders’ equity		1,455,000

Table (1)

Working notes:

1.

Calculate the amount of marketable securities of Corporation H.

Marketable securities = (Investment in securities −Sale value of marketable securities)=($60,000−$20,000)=$40,000 (a)

2.

Calculate the amount of land held for sale of Corporation H.

Land held for sales = (Market value of land −Increases in land)=($120,000−$70,000)=$50,000 (b)

3.

Calculate the amount of land of Corporation H.

Land = (Amount of land −Market value of land)=($250,000−$120,000)=$130,000

Or,

Land = (Amount of land −Land held for sale−Increase in land)=($250,000−$50,000−$70,000)=$130,000 (c)

4.

Calculate the amount of notes payable of Corporation H.

Notes payable = (Amount of notes payable −Installment payment)=($500,000−$25,000)=$475,000 (d)

5.

Calculate the amount of retained earnings of Corporation H.

Retained earnings = (Amount of retained earnings −Increased in land)=($280,000−$70,000)=$310,000 (e)

Notes:

The amount of marketable equity securities is $20,000 is to be sold in the coming year is shown in the current asset side of the balance sheet. (f)
The original cost of inventories is $160,000 is shown in the current asset side of the balance sheet. (g)
Notes payable is a long-term liability and the note is payable in installment of amount $25,000 which is classified under current maturities of long-term debt. (h)