Prepare Hitt December balance sheet

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Reference no: EM132880216

Problem - Balance Sheet Preparation The December 31, 2019, balance sheet accounts of Hitt Company are shown here in alphabetical order:

Accounts Payable

$22,400

Discount on Bonds Payable

$6,900

Accounts Receivable

21,500

Equipment

72,400

Accumulated Depreciation: Buildings

53,000

Inventory

37,200

Accumulated Depreciation: Equipment

35,100

Land

30,000

Accumulated Other Comprehensive Income

1,100

Marketable Securities (short-term)

6,100

Additional Paid-in Capital on Common Stock

24,000

Patents (net)

9,800

Additional Paid-in Capital on Preferred Stock

11,500

Preferred Stock, $100 par

21,000

Allowance for Doubtful Accounts

800

Retained Earnings

46,200

Bonds Payable (due 2027)

77,000

Revenues

107,000

Buildings

144,000

Salaries Expense

39,000

Cash

2,900

Salaries Payable

2,000

Common Stock, $10 par

30,000

Trademarks

3,700

Current Taxes Payable

10,400

 


Required -

1. Prepare Hitt's December 31, 2019, balance sheet.

2. Compute the working capital and the current ratio.

3. Discuss how the format of Hitt's balance sheet would be different from Requirement 1 if the company used IFRS.

Reference no: EM132880216

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