1
answer
0
watching
247
views
28 Sep 2019
Presented below is the balance sheet of Sargent Corporation forthe current year, 2014.
SARGENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2014
Current assets $ 488,120 Current liabilities $ 383,120 Investments 643,120 Long-term liabilities 1,003,120 Property, plant, and equipment 1,723,120 Stockholdersâ equity 1,773,120 Intangible assets 305,000 $3,159,360 $3,159,360
The following information is presented.
1. The current assets section includes cash $153,120, accountsreceivable $173,120 less $13,120 for allowance for doubtfulaccounts, inventories $183,120, and unearned rent revenue $8,120.Inventory is stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes the cash surrender value of alife insurance contract $43,120; investments in common stock,short-term (trading) $83,120 and long-term (available-for-sale)$273,120; and bond sinking fund $243,760. The cost and fair valueof investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,043,120less accumulated depreciation $363,120; equipment $453,120 lessaccumulated depreciation $183,120; land $503,120; and land held forfuture use $270,000. 4. Intangible assets include a franchise $168,120; goodwill$103,120; and discount on bonds payable $33,760. 5. Current liabilities include accounts payable $143,120; notespayable-short-term $83,120 and long-term $123,120; and income taxespayable $33,760. 6. Long-term liabilities are composed solely of 8% bonds payabledue 2022. 7. Stockholdersâ equity has preferred stock, no par value,authorized 200,000 shares, issued 73,120 shares for $438,720; andcommon stock, $1.00 par value, authorized 400,000 shares, issued103,120 shares at an average price of $10. In addition, thecorporation has retained earnings of $303,200.
Prepare a balance sheet in good form, adjusting the amounts in eachbalance sheet classification as affected by the information givenabove. (List Current Assets in order of liquidity. ListProperty, Plant and Equipment in order of Land, Building andEquipment. Enter account name only and do not provide thedescriptive information provided in thequestion.)
Presented below is the balance sheet of Sargent Corporation forthe current year, 2014.
SARGENT CORPORATION | ||||||
Current assets | $ 488,120 | Current liabilities | $ 383,120 | |||
Investments | 643,120 | Long-term liabilities | 1,003,120 | |||
Property, plant, and equipment | 1,723,120 | Stockholdersâ equity | 1,773,120 | |||
Intangible assets | 305,000 | $3,159,360 | ||||
$3,159,360 |
The following information is presented.
1. | The current assets section includes cash $153,120, accountsreceivable $173,120 less $13,120 for allowance for doubtfulaccounts, inventories $183,120, and unearned rent revenue $8,120.Inventory is stated on the lower-of-FIFO-cost-or-market. | |
2. | The investments section includes the cash surrender value of alife insurance contract $43,120; investments in common stock,short-term (trading) $83,120 and long-term (available-for-sale)$273,120; and bond sinking fund $243,760. The cost and fair valueof investments in common stock are the same. | |
3. | Property, plant, and equipment includes buildings $1,043,120less accumulated depreciation $363,120; equipment $453,120 lessaccumulated depreciation $183,120; land $503,120; and land held forfuture use $270,000. | |
4. | Intangible assets include a franchise $168,120; goodwill$103,120; and discount on bonds payable $33,760. | |
5. | Current liabilities include accounts payable $143,120; notespayable-short-term $83,120 and long-term $123,120; and income taxespayable $33,760. | |
6. | Long-term liabilities are composed solely of 8% bonds payabledue 2022. | |
7. | Stockholdersâ equity has preferred stock, no par value,authorized 200,000 shares, issued 73,120 shares for $438,720; andcommon stock, $1.00 par value, authorized 400,000 shares, issued103,120 shares at an average price of $10. In addition, thecorporation has retained earnings of $303,200. |
Prepare a balance sheet in good form, adjusting the amounts in eachbalance sheet classification as affected by the information givenabove. (List Current Assets in order of liquidity. ListProperty, Plant and Equipment in order of Land, Building andEquipment. Enter account name only and do not provide thedescriptive information provided in thequestion.)
Elin HesselLv2
28 Sep 2019