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    Preparation of a Corrected Balance Sheet

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    Uhura Company has decided to expand its operations.
    The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

    UHURA COMPANY
    BALANCE SHEET
    FOR THE YEAR ENDED 2007

    Current assets
    Cash $230,000
    Accounts receivable (net) 340,000
    Inventories at lower of average cost or market 401,000
    Trading securities-at cost (fair value $120,000) 140,000

    Property, plant, and equipment
    Building (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 160,000
    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.

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    https://brainmass.com/business/balance-sheet/preparation-of-a-corrected-balance-sheet-286857

    Solution Summary

    The solution explains how to prepare a corrected balance sheet in an Excel attachment where the workings out can be viewed by highlighting the cell in question.

    $2.19

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