Reference no: EM132683169

Landfair League finished its first year of operations in 2020. Balance sheet information at December 31, 2020 is presented below.

Debt securities:           Amortized Cost           Fair Value
Trading                        $36,400                      $33,800
Available-for-sale           60,700                   54,700
Held-to-maturity            56,800                     57,000

• AFS securities consist of stocks and bonds maturing from 2025 and thereafter.
• HTM securities consists of bonds maturing in 2028 and thereafter. 
• Accrued expenses: $89,200
• Copyrights: $66,700
• Inventory: cost, $80,100; net realizable value, $80,500
• Cash and cash equivalents: $86,000 
• Paid-in capital in excess of par value - common stock: $360,000
• Bonds payable maturing in 2035: face value, $250,000; fair value, $194,400; balance of discount on bonds payable, $63,300
• Accounts receivable: gross, $129,300; allowance for doubtful accounts, $45,000
• Preferred stock: $14,000, $4 par value, 5,000 shares authorized, 3,500 shares issued and outstanding
• Prepaid expenses: $89,900
• Accounts payable: $27,900
• Cash surrender value of life insurance policy: $42,100
• Accumulated other comprehensive income/loss: $4,000
• Buildings: cost, $2,444,600; fair value, $386,900; accumulated depreciation, $2,062,300
• Notes payable: $120,000; due in 2023
• Common stock: $90,000; $1 par value; 100,000 shares authorized, 90,000 shares issued and outstanding
• Deferred income tax asset/liability: $2,000
• Retained earnings: $94,900

Instructions:

Problem 1: Prepare Landfair League's balance sheet in accordance with GAAP.