Balance sheet in order to obtain additional funds

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Reference no: EM139599

Preparation of a Corrected Balance Sheet

Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

UHURA COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2007
Current assets
Cash	$230,000
Accounts receivable (net)	340,000
Inventories at lower of average cost or market	401,000
Trading securities-at cost (fair value $120,000)	140,000
Property, plant, and equipment
Building (net)	570,000
Office equipment (net)	160,000
Land held for future use	175,000
Intangible assets
Goodwill	80,000
Cash surrender value of life insurance	90,000
Prepaid expenses	12,000
Current liabilities
Accounts payable	135,000
Notes payable (due next year)	125,000
Pension obligation	82,000
Rent payable	49,000
Premium on bonds payable	53,000
Long-term liabilities
Bonds payable	500,000
Stockholders' equity
Common stock, $1.00 par, authorized 400,000 shares, issued 290,000	290,000
Additional paid-in capital	160,000
Retained earnings	?

Instructions:
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.

Reference no: EM139599

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