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Presented below is the balance sheet of Maggie Corporation for the current year,

ID: 2395955 • Letter: P

Question

Presented below is the balance sheet of Maggie Corporation for the current year, 2017.

MAGGIE CORPORATION
BALANCE SHEET
DECEMBER 31, 2017


The following information is presented.


Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

MAGGIE CORPORATION

MAGGIE CORPORATION
BALANCE SHEET
DECEMBER 31, 2017

Current assets $  487,550 Current liabilities $  382,550 Investments 642,550 Long-term liabilities 1,002,550 Property, plant, and equipment 1,722,550 Stockholders’ equity 1,772,550 Intangible assets 305,000 $3,157,650 $3,157,650

Explanation / Answer

MAGGIE CORPORATION

BALANCE SHEET

DECEMBER 31 2017

Particulars

$

$

$

Current Assets

Cash

152550

Equity investments (trading)

82550

Accounts receivable

172550

Less: Allowance for doubtful accounts

-12550

160000

Inventory (lower of FIFO or cost)

182550

Total Current assets

577650

Long term investments

Equity investments (available for sale) at fair value

272550

Bond sinking fund

244900

Cash surrender value of life insurance

42550

Land held for future use

270000

830000

Property plant and equipment

Land

502550

Buildings

1042550

Less: Accumulated Dep

-362550

680000

Equipment

452550

Less: Accumulated Dep

-182550

270000

1452550

Intangible assets:

Franchise

167550

Goodwill

102550

270100

Total assets

3130300

Liabilities and stockholders' equity

Accounts Payable

142550

Notes Payable

82550

Income taxes Payable

34900

Unearned rent revenue

7550

Total current liabilities

267550

Long term liabilities

Notes Payable

122550

7% Bond payable due 2022

1002550

Less: Discounts on bond payable

-34900

967650

1090200

Total liabilities

1357750

Stockholders' equity

Capital stock

Preferred stock, no par value

200,000 shares authorized

72550 issued and outstanding

435300

Common stock $1 par value

400,000 shares authorized

102550 shares issued and outstanding

102550

Paid in capital in excess of par - common stock

[102550*($10-$1)]

922950

1460800

Retained earnings

311750

Total stock holder's equity

1772550

Total liabilities and stockholders’ equity

3130300

MAGGIE CORPORATION

BALANCE SHEET

DECEMBER 31 2017

Particulars

$

$

$

Current Assets

Cash

152550

Equity investments (trading)

82550

Accounts receivable

172550

Less: Allowance for doubtful accounts

-12550

160000

Inventory (lower of FIFO or cost)

182550

Total Current assets

577650

Long term investments

Equity investments (available for sale) at fair value

272550

Bond sinking fund

244900

Cash surrender value of life insurance

42550

Land held for future use

270000

830000

Property plant and equipment

Land

502550

Buildings

1042550

Less: Accumulated Dep

-362550

680000

Equipment

452550

Less: Accumulated Dep

-182550

270000

1452550

Intangible assets:

Franchise

167550

Goodwill

102550

270100

Total assets

3130300

Liabilities and stockholders' equity

Accounts Payable

142550

Notes Payable

82550

Income taxes Payable

34900

Unearned rent revenue

7550

Total current liabilities

267550

Long term liabilities

Notes Payable

122550

7% Bond payable due 2022

1002550

Less: Discounts on bond payable

-34900

967650

1090200

Total liabilities

1357750

Stockholders' equity

Capital stock

Preferred stock, no par value

200,000 shares authorized

72550 issued and outstanding

435300

Common stock $1 par value

400,000 shares authorized

102550 shares issued and outstanding

102550

Paid in capital in excess of par - common stock

[102550*($10-$1)]

922950

1460800

Retained earnings

311750

Total stock holder's equity

1772550

Total liabilities and stockholders’ equity

3130300