Stephen King Corporation
Current Assets 449,000.00
Property, Plant and Eq 1,720,000.00
Intangible assets 305,000.00
Current Liabilities 344,000.00
Long-Term liabilities 1,000,000.00
Stockholders' Equity 1,770,000.00
The current assets section includes: Cash $114,000, Accounts receivable $170,000 less $10,000 for Allowance for doubtful accounts, Inventories $180,000 and Unearned reveune $5,000. Inventories are stated on the lower of FIFO cost or market.
The investements section includes: the Cash surrender value of a life insurance contract $40,000; Investments in common stock, Short-term (trading) $80,000 and Long-term (available for sale) $270,000, and Bond sinking fund $250,000. The cost and fair value of investments in common stock are the same.
Property, plant and equipment includes: Buildings $1,040,000 less Accumulated depreciation $360,000 ; Equipment $450,000 less Accumulated depreciation $180,000; Land $500,000 and Land held for future use $270,000.
Long term liabilities are composed solely of 7% bonds payable due 2015
Stockholders' equity has: Preferred stock, no par value, authorized 200,000 shares, issued 70,000 shares for $450,000; and Common stock, $1.00 par value authorized 400,000 shares issued 100,000 at an average price of $10. In addition, the corporation has Retained earnings of $320,000.
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.© BrainMass Inc. brainmass.com June 3, 2020, 10:33 pm ad1c9bdddf
The solution contains the preparation of Balance sheet with correct classification of assets and liabilities.