Prepare a revised balance sheet given available information

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Reference no: EM131797557

Problem

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

HEADLAND COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2017

Current assets


  Cash

$238,000

  Accounts receivable (net)

348,000

  Inventory (lower-of-average-cost-or-market)

409,000

  Equity investments (trading)-at cost (fair value $128,000)

148,000

Property, plant, and equipment


  Buildings (net)

578,000

  Equipment (net)

168,000

  Land held for future use

183,000

Intangible assets


  Goodwill

88,000

  Cash surrender value of life insurance

98,000

  Prepaid expenses

20,000

Current liabilities


  Accounts payable

143,000

  Notes payable (due next year)

133,000

  Pension obligation

90,000

  Rent payable

57,000

  Premium on bonds payable

61,000

Long-term liabilities


  Bonds payable

508,000

Stockholders' equity


  Common stock, $1.00 par, authorized 400,000 shares, issued 298,000

298,000

  Additional paid-in capital

168,000

  Retained earnings

?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $168,000 and for the equipment, $113,000. The allowance for doubtful accounts has a balance of $25,000. The pension obligation is considered a long-term liability.(List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Reference no: EM131797557

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