Problem 5-3 The adjusted trial balance of Indigo Company and other related infor
ID: 2540478 • Letter: P
Question
Problem 5-3
The adjusted trial balance of Indigo Company and other related information for the year 2017 are presented as follows.
INDIGO COMPANY
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2017
Debit
Credit
Cash
$ 43,440
Accounts Receivable
165,940
Allowance for Doubtful Accounts
$ 9,050
Prepaid Insurance
6,250
Inventory
210,940
Equity Investments (long-term)
341,440
Land
87,440
Construction in Progress (building)
126,440
Patents
36,000
Equipment
402,440
Accumulated Depreciation-Equipment
240,350
Discount on Bonds Payable
20,000
Accounts Payable
150,440
Accrued Liabilities
51,640
Notes Payable
96,440
Bonds Payable
202,440
Common Stock
502,440
Paid-in Capital in Excess of Par-Common Stock
45,000
Retained Earnings
142,530
$1,440,330
$1,440,330
Additional information:
Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed. (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.)
INDIGO COMPANY
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2017
Debit
Credit
Cash
$ 43,440
Accounts Receivable
165,940
Allowance for Doubtful Accounts
$ 9,050
Prepaid Insurance
6,250
Inventory
210,940
Equity Investments (long-term)
341,440
Land
87,440
Construction in Progress (building)
126,440
Patents
36,000
Equipment
402,440
Accumulated Depreciation-Equipment
240,350
Discount on Bonds Payable
20,000
Accounts Payable
150,440
Accrued Liabilities
51,640
Notes Payable
96,440
Bonds Payable
202,440
Common Stock
502,440
Paid-in Capital in Excess of Par-Common Stock
45,000
Retained Earnings
142,530
$1,440,330
$1,440,330
Explanation / Answer
Indigo Company Balancesheet December 31, 2017 Assets Current Assets Cash 43,440 Accounts Receivable 165,940 Less:Allowances for doubtful accounts 9,050 156,890 Inventory (LIFO) 210,940 Prepaid Insurance 6,250 Total Current Assets 417,520 Long-Term Investments Equity Investments 341,440 Plant, Property and Equipment Land 87,440 Construction in progress 126,440 Equipment 402,440 Less:Accumulated Depriciation 240,350 162,090 Total plant, property and equipmment 375,970 Intangible Assets Patents 36,000 Total Assets 1,170,930 Liabilities and Stockholders’ Equity Current Liabilities Notes Payable 96440 Less: Discount on Notes Payable 20000 76440 Accounts payable 150,440 Bonds payable 202,440 Accrued expense 51,640 Total current liabilities 480960 Long Term Debt 8%, 2028 Stockholders’ Equity Paid in capital in Excess of Par Common Stock 45000 Common Stock 502,440 Retained Earnings 142,530 Total Stockholders’ Equity 689970 total Liability and Stockholders’ Equity 1170930