Additional information: At the end of 2019, (a) the amount of long-term liabilities is twice the amount of current liabilities and (b) there are 2,900 shares of common stock outstanding. During 2020, the company (a) issued 100 shares of common stock for $25 per share, (b) earned net income of $20,600, and (c) paid dividends of $1 per share on the common stock outstanding at year-end.
Required:
Next Level Fill in the blanks lettered (a) through (p). All of the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
Fill in the blanks labeled (a) through (p).
Explanation of Solution
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.
Fill the missing information:
Company C | ||
Balance Sheet | ||
December 31 | ||
Particulars | 2019 | 2020 |
Current assets | (1)(d)$35,200 | $39,800 |
Long-term investments | $40,100 | (8)(o)$42,300 |
Property, plant, and equipment (net) | (2)(h) $153,000 | $180,000 |
Less: Accumulated depreciation | ($37,500) | ($48,600) |
Intangible assets | $19,100 | $18,600 |
Total assets | (e)$209,900 | (m)$232,100 |
Current liabilities | (3)(g)$17,300 | (9)(p)$20,000 |
Long-term liabilities | (4)(a)$34,600 | $33,100 |
Total liabilities | $51,900 | (10)(j)$53,100 |
Common stock, $10 par | (5)(b)$29,000 | (11)(i)$30,000 |
Additional paid-in capital | (6)(f)$37,700 | (12)(n)$39,200 |
Total contributed capital | $66,700 | (13)(l)$69,200 |
Retained earnings | $83,300 | (14)(k)$100,900 |
Accumulated other comprehensive income | $8,000 | $8,900 |
Total shareholders’ equity | (7)(c)$158,000 | $179,000 |
Total liabilities and shareholders’ equity | $209,900 | $232,100 |
Table (1)
Note:
The amount of total assets for missing information (e) for the year 2019 and (m) for the year 2020 is same as the amount of total liabilities and shareholders’ equity for the year 2019 ($209,900) and year 2020 ($232,100) since, total assets equals total of liabilities and shareholders’ equity.
Working notes:
Year 2019:
(1) Calculate the amount of current assets:
(2) Calculate the amount of property, plant and equipment:
(3) Calculate the amount of current liabilities:
(4) Calculate the amount of long-term liabilities:
(5) Calculate the amount of common stock:
(6) Calculate the amount of additional paid-in capital:
(7) Calculate the amount of total shareholders’ equity:
Year 2020:
(8) Calculate the amount of long-term investments:
(9) Calculate the amount of current liabilities:
(10) Calculate the amount of total liabilities:
(11) Calculate the amount of common stock:
(12) Calculate the amount of additional paid-in capital:
(13) Calculate the amount of total contributed capital:
(14) Calculate the amount of retained earnings:
(15) Calculate the value of additional shares issued:
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