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
  BALANCE SHEET
  DECEMBER 31, 2012

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.