Prepare a balance sheet in report form as of December 31, 2016 from the date giv
ID: 2415091 • Letter: P
Question
Prepare a balance sheet in report form as of December 31, 2016 from the date given above. You are not required to present the details of Preferred and Common Stock (i.e., number of shares authorized, issued and outstanding).
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)Prepare a balance sheet in report form as of December 31, 2016 from the date given above. You are not required to present the details of Preferred and Common Stock (i.e., number of shares authorized, issued and outstanding).
• Available-for-sale investments should be reported as a single asset on the balance sheet, regardless of how many accounts exist in the ledger for such assets. • Recall that current assets are to be reported in order of liquidity. Available-for-sale investments are considered to be more liquid that accounts receivable. • Report fixed assets and paid-in capital accounts in account-number order. • Omit the description of bonds and stocks (i.e., percentage rates, due date, number of shares, etc.) • Enter all amounts as positive numbers, with one exception: If an unrealized loss has occurred, it must be reported as a negative amount on the balance sheet.Explanation / Answer
Balance Sheet as on 31 December,2016 ASSETS Amount $ Current Assets Cash 246,000 Available-for-sale investments (at cost) 260,130 Valuation allowance for available-for-sale investments -6,500 253,630 Accounts receivable 545,000 Allowance for doubtful accounts 8,450 536,550 Interest receivable 1,125 Inventory 778,000 Prepaid expenses 27,400 Total Current Assets A 1,842,705 Long Term assets Long Term Investment Investment in Pinkberry Co. stock -Subsidary 1,009,300 Investment in Dream Inc. bonds 90,000 Total Long term Investment 1,099,300 Property, Plant & Equipment Office buildings and equipment 4,320,000 Accumulated depreciation—office buildings and equipment 1,580,000 2,740,000 Store buildings and equipment 12,560,000 Accumulated depreciation—store buildings and equipment 4,126,000 8,434,000 Total Property, Plant & Equipment 11,174,000 Intangible Assets Goodwill 500,000 Total long term Assets B 12,773,300 Total assets A+B 14,616,005 Liabilities Current Liabilties Accounts payable $194,300 Income tax payable 44,000 Total Current Liabilties $238,300 Long term Liabilities Bonds payable 500,000 Premium on bonds payable 19,000 Total Long term Liabilities 519,000 Stockholders Equity Preferred Stock 1600000 Common Stock 2,000,000 Excess of issue price over par: -Common 886,800 -Preferred 150,000 1,036,800 Retained Earnings 9,387,105 Treasury stock -178,200 Paid-in capital from sale of treasury stock 13,000 Total Stockholders Equity 13858705 Total Liabilities & Stockholder equity $14,616,005 Statemnt of Retained earnings Retained earnings, January 1, 2016 9,319,725 Net Income 329000 Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Unrealized gain (loss) on available-for-sale investments -6,500 Ending Retained Earnings 9,387,105