Prepare a balance sheet as of december

Assignment Help Accounting Basics
Reference no: EM131763643

1) Adjusted Trial Balance

Eastwood Company Adjusted Trial Balance December 31, 2010 Assets

Current Assets:

Cash                                                            $ 41,000

Accounts receivable                                       163,500

Allowance for Doubtful Accounts                                                $ 8,700

Prepaid Insurance                                         5,900

Inventory                                                     208,000

Long-term Investments                                 339,000

Land                                                            85,000

Construction Work in Progress                        124,000

Patents                                                         36,000

Equipment                                                    400,000

Accumulated Depreciation of Equpment                                      240,000

Unamortized Discount on Bonds Payable         20,000

Accounts Payable                                                                     148,000

Accrued Expenses                                                                    49,200

Notes Payable                                                                          94,000

Bonds Payable                                                                         200,000

Common Stock                                                                        500,000

Paid-in Capital in Excess of Par - Common Stock                        45,000

Retained Earnings                                                                    138,000

                                                                   1,422,900             1,422,900

Additional Info:

1. The LIFO method of inventory value is used.

2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same.

3. The amount of the Construction Work in Progress account represents the costs expended to date on a building in the process of construction.  (The company rents factory space at the present time.)  The land on which the building is being constructed cost $85,000, as shown in the trial balance.

4. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis.

5. Of the unamortized discount on bonds payable, $2,000 will be amortized in 2011.

6. The notes payable represent bank loans that are secured by long-term investments carried at $120,000.  These bank loans are due in 2011.

7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2021.

8. 600,000 shares of common stock of a par value of $1 were authorized, of which 500,000 shares were issued and outstanding.

Instructions: Prepare a balance sheet as of December 31, 2010, so that all important information is fully disclosed.

2) Balance Sheet Adjustment and Preparation:

Presented below is the balance sheet of Sargent Corporation for the current year, 2010.

Sargent Corporation Balance Sheet December 31, 2010

Current Assets                                            $ 485,000

Investments                                                640,000

Property, plant, and equipment                     1,720,000

Intangible assets                                         305,000

                                                                 3,150,000

Current Liabilities                                        $ 380,000

Long-term liabilities                                     1,000,000

Stockholders' equity                                    1,770,000

                                                                 3,150,000

Additional Info:

1. The current assets section includes: cash $150,000, accounts receivable $170,00 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned revenue $5,000.  Inventories are stated on the lower of FIFO cost or market.

2. The investments section includes: the cash surrender value of a life insurance contract $40,000; investments in common stock, short-term (trading) $80,000 and long-term (available-for-sale) $270,000, and bond sinking fund $250,000.  The cost and fair value of investments in common stock are the same.

3. Property, plant, and equipment includes: buildings $1,040,000 less accumulated depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000; land $500,000; and land held for future use $270,000.

4. Intangible assets include: a franchise $165,000; goodwill $100,000; and discount on bonds payable $40,000.

5. Current liabilities include: accounts payable $140,000; notes payable - short-term $80,000 and long-term $120,000; and taxes payable $40,000.

6. Long-term liabilities are composed solely of 7% bonds payable due 2018.

7. Stockholders' equity has: preferred stock, no par value, authorized 200,000 shares, issued 70,000 shares for $450,000; and common stock, $1.00 par value, authorized 400,000 shares, issued 100,000 shares at an average price of $10.  In addition, the corporation has retained earnings of $320,000.

Instructions: Prepare a balance sheet in good form, adjusting in each balance sheet classification as affected by the information given above.

Reference no: EM131763643

Questions Cloud

Draw upon relevant material from the given readings : Draw upon relevant material from the readings Listed Below and no other sources. Incorporate it into a concise, clearly organized, independent analysis.
What is an example of demonstrating your batna : What is an example of “demonstrating your BATNA” with a subordinate of co-worker? Be sure to highlight the benefits as well pitfalls of such an approach.
Role of the salesperson over the past decade : From the personal selling perspective, there have been many changes in the role of the salesperson over the past decade.
Write an essay on core principle of practical macroeconomics : Write an essay based on the core principles of practical macroeconomics, and on our discussion of the economic way of thinking, that convinces the reader whethe
Prepare a balance sheet as of december : Eastwood Company Adjusted Trial Balance December 31, 2010 Prepare a balance sheet as of December 31, 2010, so that all important information is fully disclosed
What is the new profit-maximizing output : Assume the competitive market shown below faces a short run price of $10. Using graph below, identify the following: What is the new profit-maximizing output?
Layman view of an art exhibition : In his article A Layman's View of an Art Exhibition, Theodore Roosevelt commented that what might appear to be art to one person may not be art to someone else.
Proper pricing and promotion strategy : A proper pricing and promotion strategy can make or break any business. Your goal is to develop comprehensive pricing strategy for your product(s) and service
Should big box contest jurisdiction-venue of federal court : Should Big Box contest jurisdiction or venue of federal court in Alaska? If so, what is likely outcome? Even if Big Box could successfully contest jurisdiction,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd