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    Preparation of a Corrected Balance Sheet: Uhura Company has decided to expand its operations...

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    5. (Preparation of a Corrected Balance Sheet) 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 2004
    Current assets
    Cash (net of bank overdraft of $30,000) $200,000
    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 105,000
    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, 290,000
    issued 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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    5. (Preparation of a Corrected Balance Sheet) 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 2004
    Current assets
    Cash (net of bank overdraft of $30,000) $200,000
    Accounts receivable (net) 340,000
    Inventories at lower of average cost or market 401,000
    Trading securities-at cost (fair value $120,000) ...

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