prepare a revised balance sheet given the available information assume that the accu 644407
(Preparation of a Corrected Balance Sheet) Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented on the next page in order to obtain additional funds for expansion.
BRUNO COMPANY |
|
Current assets |
|
Cash |
$260,000 |
Accounts receivable (net) |
340,000 |
Inventories (lower of average cost or market) |
401,000 |
Equity investments (trading)—at cost (fair value $120,000) |
140,000 |
Property, plant, and equipment |
|
Buildings (net) |
570,000 |
Office equipment (net) |
160,000 |
Land held for future use |
175,000 |
Intangible assets |
|
Goodwill |
80,000 |
Cash surrender value of life insurance |
90,000 |
Prepaid expenses |
12,000 |
Current liabilities |
|
Accounts payable |
135,000 |
Notes payable (due next year) |
125,000 |
Pension obligation |
82,000 |
Rent payable |
49,000 |
Premium on bonds payable |
53,000 |
Long term liabilities |
|
Bonds payable |
500,000 |
Stockholders’ equity |
|
Common stock, $1.00 par, authorized |
|
400,000 shares, issued 290,000 |
290,000 |
Additional paid in capital |
180,000 |
Retained earnings |
? |
Instructions
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long term liability.