Preparation of Balance sheet

Stephen King Corporation
Balance Sheet
31-Dec-07
Current Assets 449,000.00
Investments 640,000.00
Property, Plant and Eq 1,720,000.00
Intangible assets 305,000.00
3,114,000.00

Current Liabilities 344,000.00
Long-Term liabilities 1,000,000.00
Stockholders' Equity 1,770,000.00
3,114,000.00

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.

Intangible assets include: a Francise $165,000, Goodwill $100,000; and Discount on bonds payable $40,000

Current liabilities include: Accounts payable $104,000, Notes payable Short term $80,000 and Long term $120,000 and Taxes payable $40,000

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.