Create a balance sheet from this given information: Retained earnings and balanc
ID: 2415003 • Letter: C
Question
Create a balance sheet from this given information:
Retained earnings and balance sheet data: Accounts payable $ 194,300 Accounts receivable 545,000 Accumulated depreciation—office buildings and equipment 1,580,000 Accumulated depreciation—store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available-for-sale investments (at cost) 260,130 Bonds payable, 5%, due 2024 500,000 Cash 246,000 Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over par: -Common 886,800 -Preferred 150,000 Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of $33 per share) 178,200 Unrealized gain (loss) on available-for-sale investments (6,500) Valuation allowance for available-for-sale investments (6,500)Explanation / Answer
Detailed break up of each item is presented below :
18,49,205
All the numbers shared have been put into the balance sheet and explained head item wise for break up.
The mismatch is due to some information not shown in the details given/wrong sign
Particulars As at 31 December 2016 A EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 34,34,800.00 (b) Reserves and surplus 1,00,88,405.00 1,35,23,205.00 2 Non-current liabilities (a) Long-term borrowings 5,19,000.00 3 Current liabilities (a) Trade payables 1,94,300.00 (b) Short-term provisions 44,000.00 2,38,300.00 TOTAL 1,42,80,505.00 B ASSETS 1 Non-current assets (a) Fixed assets (i) Tangible assets 1,11,74,000.00 (b) Non-current investments 10,99,300.00 (c) Goodwill 5,00,000.00 1,27,73,300.00 2 Current assets (a) Current investments 2,60,130.00 (b) Inventories 7,78,000.00 (c) Trade receivables 5,36,550.00 (d) Cash and cash equivalents 2,46,000.00 (e) Other current assets 28,525 18,49,205.00 TOTAL 1,46,22,505.00