Prepare a balance sheet in report form as of December 31, 2016. * Balance sheet
ID: 2530938 • Letter: P
Question
Prepare a balance sheet in report form as of December 31, 2016. *
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 Investments-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
(1) NON-CURRENT ASSETS
FIXED ASSETS
NOTES TO ACCOUNTS:-
1.SHARE CAPITAL
ISSUED COMMON SHARES= $200000
PREFERRED STOCK 5%= $1600000
TREASURY STOCK= $178200
TOTAL= $1978200
2. RESERVES AND SURPLUS
OPENING RETAINED EARNINGS =$9319725
PAID IN CAPITAL FROM SALE OF TREASURY STOCK= $13000
PREMIUM RECEIVED
LESS; UNREALISED LOSS ON AVAILABLE FOR SALE INVESTMENTS (6500)
VALUATION ALLOWANCES FOR AVAILABLE FOR SALE INVESTMENTS (6500)
TOTAL=$10356525
3. TRADE PAYABLES
ACCOUNTS PAYABLE =$194300
4. OTHER CURRENT LIABLITIES
DIVIDENDS
PREMIUM PAYABLE ON BONDS PAYABLE = $19000
TOTAL= $274120
5. SHORT-TERM PROVISIONS
ALLOWANCE FOR DOUBTFUL DEBTS= $8450
INCOME TAX PAYABLE= $44000
TOTAL= $52450
6. TANGIBLE ASSETS
OFFICE BUILDING AND EQUIPMENTS=$4320000
LESS; DEPRICIATION=$1580000
NET VALUE=$2740000
STORE BUILDING AND EQUIPMENTS =$12560000
LESS; DEPRICIATION=$4126000
NET VALUE=$8434000
TOTAL= $11174000
7. INTANGIBLE ASSETS
GOODWILL =$500000
8. NON-CURRENT INVESTMENTS
INVESTMENTS IN PINKBERRY CO. STOCK= $1009300
9. LONG TERM LOANS
DREAM INC. BONDS = $90000
10. CURRENT INVESTMENTS
STOCKS AVAILABLE FOR SALE= $260130
5% BONDS= $500000
TOTAL= $760130
11. INVENTORIES= $778000
12. TRADE RECEIVABLES= $545000
13. CASH= $246000
14. OTHER CURRENT ASSETS
INTEREST RECEIVABLES= $1125
PRE-PAIN EXPENSES= $27400
TOTAL= $28525
PARTICULARS NOTE NO. $ EQUITY AND LIABILITIES (1) SHAREHOLDERS' FUND SHARE CAPITAL 1. 1978200 RESERVES AND SURPLUS 2. 10356525 MONEY RECEIVED AGAINST SHARE WARRANTS (2) SHARE APPLICATION MONEY PENDING ALLOTMENT (3) NON-CURRENT LIABILITIES LONG-TERM BORROWINGS DEFERRED TAX LIABILITIES OTHER LONG-TERM LIABILITIES LONG-TERM PROVISIONS (4) CURRENT LIABILITIES SHORT-TERM LIABILITIES TRADE PAYABLES 3. 194300 OTHER CURRENT LIABILITIES 4. 274120 SHORT-TERM PROVISIONS 5. 52450 TOTAL ASSETS(1) NON-CURRENT ASSETS
FIXED ASSETS
(A)TANGIBLE ASSETS 6. 11174000 (B)INTANGIBLE ASSETS 7. 500000 (C) CAPITAL WORK-IN-PROGRESS (D)INTANGIBLE ASSETS UNDER DEVELOPMENT NON-CURRENT INVESTMENTS 8. 1009300 DEFERRED TAX ASSETS LONG-TERM LOANS AND ADVANCES 9. 90000 OTHER NON-CURRENT ASSETS (2) CURRENT ASSETS CURRENT INVESTMENTS 10. 760130 INVENTORIES 11. 778000 TRADE RECEIVABLES 12. 545000 CASH AND CASH EQUIVALENT 13. 246000 SHORT-TERM LOANS AND ADVANCES OTHER CURRENT ASSETS 14. 28525 TOTAL