Problem 5-5 Presented below is the balance sheet of Sargent Corporation for the
ID: 2420332 • Letter: P
Question
Problem 5-5
Presented below is the balance sheet of Sargent Corporation for the current year, 2014.
SARGENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2014
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.)
SARGENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2014
Explanation / Answer
Sargent Corporation Balance Sheet as on 31.12.2014. Assets Amt $ Liabilities Amt $ Current Assets Current Laibilities Cash 152,300 Unearned Rent Revenue 7,300 Accounts Receivable 172,300 Accounts Payable 142,300 Allowance for doubtful accounts (12,300) Notes Payable -short term 82,300 Inventories 182,300 Income Tax payable 35,400 Cash Surrender value life insurance 42,300 Total Current Laibilities 267,300 Trading Investment 82,300 Total Current Assets 619,200 Non Current Liabilities Non Current Assets Notes Payable -Long term 122,300 Fixed assets Bond Payable 1,002,300 Building 1,042,300 Discount on Bond Payable (35,400) Accumulated Depreciation-Building (362,300) Total Non Current Liabilities 1,089,200 Equipment 452,300 Accumulated Depreciation-Equipment (182,300) Stockholders Equity Land 772,300 Preferred stock, no par, authorised 200000, issued 72300 433,800 Total Fixed Asset 1,722,300 Common stock , par value $1, authorised 400000, issued 102300 1,023,000 Retained Earning 315,500 Intangible Assets Franchasiee 167,300 Total Stock holders Equity 1,772,300 Goodwill 102,300 Total Intangible Assets 269,600 Investment-Available for sale 272,300 Bond sinking fund 245,400 Total Non Current Assets 2,509,600 Tota Assets 3,128,800 Total Liabilities & Equities 3,128,800