Question

Presented below is the trial balance of Oriole Corporation at December 31, 2020.

		Debit		Credit
Cash		$   199,560
Sales				$ 8,103,320
Debt Investments (trading) (at cost, $145,000)		156,320
Cost of Goods Sold		4,800,000
Debt Investments (long-term)		301,560
Equity Investments (long-term)		279,560
Notes Payable (short-term)				93,320
Accounts Payable				458,320
Selling Expenses		2,003,320
Investment Revenue				67,870
Land		263,320
Buildings		1,042,560
Dividends Payable				138,560
Accrued Liabilities				99,320
Accounts Receivable		438,320
Accumulated Depreciation-Buildings				152,000
Allowance for Doubtful Accounts				28,320
Administrative Expenses		904,870
Interest Expense		215,870
Inventory		599,560
Gain				84,870
Notes Payable (long-term)				902,560
Equipment		603,320
Bonds Payable				1,002,560
Accumulated Depreciation-Equipment				60,000
Franchises		160,000
Common Stock ($5 par)				1,003,320
Treasury Stock		194,320
Patents		195,000
Retained Earnings				80,560
Paid-in Capital in Excess of Par				82,560
Totals		$12,357,460		$12,357,460

Prepare a balance sheet at December 31, 2020, for Oriole Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

Prepare the balance sheet as follows:

Oriole Corporation
Balance Sheet
December 31, 2020
Assets
Current Assets:
Cash		199560
Treding securities		156320
Accounts receivable	438320
Less: Allowances for doubtful accounts	-28320	410000
Inventory		599560
Total current assets			1365440
Long-term Investments:
Debt investments		301560
Equity investments		279560
Total long-term investments			581120
Property,Plant, and Equipment:
Land		263320
Buildings	1042560
Less: Accumulated depreciation	-152000	890560
Equipment	603320
Less: Accumulated depreciation-Equipment	-60000	543320
Total property,plant, and equipment			1697200
Intengiable Assets:
Franchises		160000
Patents		195000
Total intangiable assets			355000
Total assets			3998760
Liabilities and Stockholders' Equity
Current Libilities:
Accounts payable		458320
Short-term notes payable		93320
Dividends payable		138560
Accured libilities		99320
Total current libilities			789520
Long-term Liabilities:
Long-term notes payable		902560
Bond payable		1002560
Total longterm libilities			1905120
Total libilities			2694640
Stockholders' Equity:
Paid-in-capital:
Common stock ($5 par)	1003320
Paid-in capital in excess of par	82560	1085880
Retained earnings		412560
Total paid-in-capital and retained earnings		1498440
Less: Treasury stock		-194320
Total stockholders equity			1304120
Total liabilities and stockholders equity			3998760

Balance of retained earnings shown in the balance sheet above has been calculated in the following manner:

Sales	8103320
Cost of goods sold	-4800000
Gross profit	3303320
Less operating expenses:
Selling expenses	-2003320
Administrative expenses	-904870
Operating income	395130
Other income and expenses:
Investment revenue	67870
Interest expense	-215870
Income before extraordinary item	247130
Extraordinary gain	84870
Net income	332000
Beginning retained earnings	80560
Ending retained earnings	412560