Question

The folowing balance sheet for the Hubberd Corporation was prepared by the company Balance Sheet Assets Buildings Land Cash Accounts receivable (net) Inventories Machinery Patent (net) Investment in narketable equity securities $ 762,800 286,600 72,808 144,808 264,808 292,800 112,80e 84,900 $2,016,808 Total assets Liabilities and Shareholders Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventories Common stock, authorized and issued s 227,808 267,800 524,000 92,880 448,000 458,000 112,008 shares of no par stock Retained earnings Total liabilities and shareholders equity $2,816,808 Additional Information 1. The buildings, land. and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $62000 but, due to a significant increase in market value, is listed at $144.000. The increase in the land account was credited to retained eanings 2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $32.000 of which will be sold in the coming year. The remainder will be held indefinitely 3. Notes payable are all long-term. However, a $220,000 note requires an installment payment of $55.000 due in the coming year. 4. Inventories are recorded at current resale value. The original cost of the inventories is $172.000 < Prev : isat 19, İH here to search HP Support 1-800-490-033

Answer 1

HUBBARD CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets
Cash	72000
Marketable securities	32000
Inventories ($264000 - $92000)	172000
Accounts receivable (net)	144000
Total current assets		420000
Investments
Marketable securities ($84000 - $32000)	52000
Land held for sale	62000
Total investments		114000
Property, Plant, and Equipment
Land ($286000 - $144000)	142000
Buildings	762000
Machinery	292000
	1196000
Accumulated depreciation	-267000
Property, plant, and equipment (net)		929000
Intangible assets
Patent		112000
Total assets		1575000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	227000
Current maturities of long-term debt	55000
Total current liabilities		282000
Long-term liabilities
Notes payable ($524000 - $55000)		469000
Total liabilities		751000
Shareholders' equity
Common stock	448000
Retained earnings ($458000 - $82000)	376000
Total shareholders' equity		824000
Total liabilities and shareholders' equity		1575000