Question

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. $ 1,950 4,900 (1,100) 6,700 1,9ee 14,350 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in woes) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds) 3,700 2,950 22,800 (4,900) $ ? $ 5,900 5,400 800 4,400 16,500 6,200 400

Answer 1

Prepare a classified balance sheet as follows:

Sanderson manufacturing company
Balance sheet
At December 31, 2021
Assets
Current assets
Cash		1950
Short term investments		3700
Accounts receivable, net of allowance		3800
Inventories
Raw materials and work in process	2950
Finished goods	6700	9650
Prepaid expenses		1900
Total current assets		21000
Property, plant, and equipment
Equipment	22000
Accumulated depreciation	-4900
Net property,plant, and equipment		17100
Intangible assets
Patent		6000
Total assets		44100
Liabilities and shareholders equity
Current liabilities
Accounts payable		5900
Notes payable (current)		1350
Interest payable (400+800)		1200
Deferred revenue		2200
Total current liabilities		10650
Long term liabilities
Deferred revenue	2200
Note payable	4050
Bond payable	6200
Total long term liabilities		12450
Total liabilities		23100
Shareholder's equity
Common stock	14300
Retained earnings	6700
Total shareholder's equity		21000
Total liabilities and shareholder's equity		44100