Question

Problem 16-06A The following data, presented in alphabetical order, are taken from the records of Sunland Corporation. Accounts payable $239,500 Accounts receivable 141,000 Accumulated depreciation-buildings 180,300 Accumulated depreciation-equipment 51,300 Allowance for doubtful accounts 6,000 Bonds payable (10%, due 2028) 499,200 Buildings 949,300 Cash 42,600 Common stock ($10 par value; 508,200 shares authorized, 149,400 shares issued) 1,494,000 Dividends payable 79,800 Equipment 274,600 Goodwill 200,100 Income taxes payable 120,200 Inventory 169,300 Investment in Mara common stock (30% ownership), at equity 379,400 Investment in Sasse common stock, at fair value 278,400 Land 390,900 Notes payable (due 2021) 70,900 Paid-in capital in excess of par-common stock 138,800 Premium on bonds payable 39,500 Prepaid insurance 16,800 Retained earnings 102,900 Short-term investments, at fair value 180,000

Answer 1

Classified Balance Sheet:

SUNLAND CORPORATION
Balance Sheet
As on December 31, 2020
Assets
Current Assets:
Cash			$42,600
Inventory			$169,300
Accounts Receivable		$141,000
Less: Allowance for doubtful accounts		($6,000)	$135,000
Prepaid Insurance			$16,800
Short-term investments, at fair value			$180,000
Total Current Assets			$543,700
Long-term Investments:
Investment in Mara Common Stock (30% ownership), at equity		$379,400
Investment in Sasse Common Stock, at fair value		$278,400
Total Investments			$657,800
Intangible Assets:
Goodwill		$200,100
Total Intangible Assets			$200,100
Property, Plant and Equipment:
Land		$390,900
Buildings	$949,300
Less: Accumulated Depreciation - Buildings	($180,300)	$769,000
Equipment	$274,600
Less: Accumulated Depreciation - Equipment	($51,300)	$223,300
Total property, plant and equipment			$1,383,200
Total Assets			$2,784,800
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities:
Accounts Payable	$239,500
Dividends Payable	$79,800
Income Tax Payable	$120,200
Notes Payable (due 2021)	$70,900
Total Current Liabilities		$510,400
Long-term Liabilities:
Bonds Payable (10%, due 2028)	$499,200
Total Long-term Liabilities		$499,200
Total Liabilities		$1,009,600
Shareholders' Equity
Common Stock ($10 par value; 508,200 shares authorized, 149,400 shares issued)	$1,494,000
Paid-in Capital in excess of par-common stock	$138,800
Premium on bonds payable	$39,500
Retained Earnings	$102,900
Total Shareholders' Equity		$1,775,200
Total Liabilities and Shareholders' Equity			$2,784,800