Question

Bonita Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. BONITA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $242,500 Accounts receivable (net) 352,500 Inventory (lower-of-average-cost-or-market) 413,500 Equity investments (marketable)-at cost (fair value $132,500) 152,500 Property, plant, and equipment Buildings (net) 582,500 Equipment (net) 172,500 Land held for future use 187,500 Intangible assets Goodwill 92,500 Cash surrender value of life insurance 102,500 Prepaid expenses 24,500 Current liabilities Accounts payable 147,500 Notes payable (due next year) 137,500 Pension obligation 94,500 Rent payable 61,500 Premium on bonds payable 65,500 Long-term liabilities Bonds payable 512,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 302,500 302,500 Additional paid-in capital 172,500 Retained earnings ?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $172,500 and for the equipment, $117,500. The allowance for doubtful accounts has a balance of $29,500. 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.)

Answer 1

Bonita company Balance sheel Decombes 31 2020 current Assets cash 1 242 500 Equity Investment 132, 500 ACCOUNT Receivable 382000 Allowance for doubtful Accounts (29 500) 352 Soo Inventory 413500 Prepaid expense 24500 TOTOY current Assets $ 1.165 500 Long term Investment : Land s 18 F 500 cash surrended 1102500 TOTCY Long term investment $ 290,000 property plant and cauipment: Building ISS000 Less. Accumulated depreciation (172 500) $582500 cauipment 290,000 Less: Accumulated Depreciation (117500) $172500 Toral property plant & equipment $ 755000 Antangible Assets : Good will $92500 TOTES Assets to 2303000

Liabilities Stockhoides's souty cument liability Accounts Payabie 16500 Notes cavable 113500 Rent Payable CI 500 Toras curent liabilities Long term liability : Bonds payable $ 512 500 ad premium on Bond 6500 | 578,000 pension obligation. 94500 G#2 Soo TOTOL liabilities s 1,019000 stockholder's avity - common stock $ 302 300 Additional paid in capital 192500 475000 Retained camings tu 809000112 3400 TOTOY stockholder's Equity TOTC liabilities & stockholder's eauity & 2303,000 & Retained caminy TOTCH Assets – TOTG liability e Equity 2,03,000 - 1,019,000 - 475000 - $ 809000