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Balance sheet

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S. King Co
Balance sheet
December 31, 2007

current assets $449,000 current liabilities 344,00
Investments 640,000 Long-term liabilities 1,000,000
Property, plant and equipment 1,720,000 stockholders equity 1,770,000
Intangible assets 305,000

Following info presented:

1.) the current assets section includes: cash $114,000, accounts receivable 170,000 less 10,000 for allowance for doubtful accounts, Inventories 180,00, and unearned revenue 5,000. Inventories are stated on the lower fifo cost or market.

2.) The investments 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 tax of investments in common stock are the same.

3.) 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.

4.) Intangible assets include: a franchise 165,000, goodwill 100,000, and discount on bonds payable 40,000.

5.) Current liabilities include: accounts payable 104,000, notes payable short-term 80,000, and long-term 120,000, and taxes payable 40,000.

6.) Long-term liabilities are composed solely of 7% bonds payable due 2015.

7.) Stockholder's 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 shares at an average price of $10. In addition, the corporation has retained earnings of $320,000.

Instructions:
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.

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The solution explains how to prepare a balance sheet in good form from the given details

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