Question

Presented below is the balance sheet for HHD, Inc., at December 31, 2021. Current assets Investments Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 640,000 530,000 2,280,000 220,000 $3,670,000 $ 440.000 830,000 2,400,000 $3,670,000 The captions shown in the summarized statement above include the following: a. Current assets: cash, $160,000; accounts receivable (net). $210,000; inventory, $235,000; and prepaid insurance, $35,000 b. Investments: investment in equity securities, short term, $100,000, and long term, $170,000, and restricted cash, long term, $260,000. c. Property, plant, and equipment buildings. $1,600,000 less accumulated depreciation, $610,000; equipment, $600,000 less accumulated depreciation, $210,000, and land, $900,000. d. Intangible assets net of amortization: patent, $120,000; and copyright, $100,000. e. Current liabilities: accounts payable, $110,000, notes payable, short term, $160,000, and long term, $100,000; and income taxes payable, $70,000. f. Long-term liabilities: bonds payable due 2023. 9. Shareholders' equity: common stock, $1,500,000; retained earnings, $900,000. Six hundred thousand shares of no par common stock are authorized, of which 300,000 shares were issued and are outstanding. Required: Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

HHD INC Balance sheet At Decomber 31 2021 Assets current Assets : cash - Prepaid Insurance - inventory - Account Receivable Inet - Investment in equiry secunities 6 160,000 3 5000 235000 210,000 $ 40,000 $ 740,000 Total current Assels Investments : - common stock) Investment in stock Restricted cash 170,000 260,000 TOTCY Investment $ 430,000 and equipment - property, plant Land Building Equipment 900,000 1,600,000 600,000 3400,000 (610,000) 1(210,000) F 22 80,000 Less: Accumulated Dep. - building Less ACGUmulated Dep - Equipment Net Propeoty, plant and Sauipment Intangiable assets : Plent (net) copuright (net) Patent 120000 100,000 TOTO Intangiable Assets 4 TOTCH Assets $ 220,000 3,670,000

Liabilities and shareholder's equity cursent liabilities: Account rayable Notes payable Income taxes payable $ 110,000 1160,000 10000 $ 340,000 Toll current liabilities -Long-team liabilities: Bonds poyable Note payable 830,000 100,000 s 930,000 g 1, 270,000 TOIG tong-term liabilities TOTO liabilities - shareholder's equity. - common stock - Retained Eamings B 1,500,000 900,000 TOTCH shareholded's equity TOICS liabilities & shareholder's equity $ 2.400,000 $ 3.670,000