SANDERSON MANUFACTURING COMPANY | ||
Balance Sheet | ||
At December 31,2021 | ||
( $ in 000s) | ||
Assets | ||
Current assets : | ||
Cash | $1,950 | |
Accounts receivable | 4,900 | |
Allowance for uncollectible accounts | (1,100) | |
Finished goods inventory | 6,700 | |
Raw material and work in process inventory | 2,950 | |
Prepaid expenses | 1,900 | |
Investments | 3,700 | |
Total current assets | 21,000 | |
Long terms assets : | ||
Equipment | $22,000 | |
Accumulated depreciation | (4,900) | |
Patents (net) | 6,000 | |
Total long terms assets | 23,100 | |
Total assets | $44,100 | |
Liability and shareholders' equity | ||
Current liabilities : | ||
Accounts payable | $5,900 | |
Notes payable | 1,350 | |
Interest payable (on notes) | 800 | |
Interest payable (on bonds) | 400 | |
Deferred revenue | 2,200 | |
Total current liabilities | 10,650 | |
Long term liabilities : | ||
Notes payable | $4,050 | |
Bonds payable | 6,200 | |
Deferred revenue | 2,200 | |
Total long term liabilities | 12,450 | |
Total liabilities | 23,100 | |
Shareholders' equity | ||
Authorized Share Capital | ||
600,000 shares of no par stock | ||
Issued Share Capital | ||
Common stock ( 320,000 shares issued and outstanding) | $14,300 | |
Retained earnings | 6,700 | |
Total shareholders' equity | 21,000 | |
Total liabilities and shareholders' equity | $44,100 | |
Working Notes | ||
Computation of Retained Earnings | ||
Balance at the beginning of the year | $5,400 | |
Add: Net income for the year | 1,900 | |
Less: Dividends declared and paid | (600) | |
Balance at the end of the year | 6,700 | |
Compuation of Common Stock | ||
Total liabilities as per the updated balance sheet | $23,100 | |
Debt to equity ratio | 1.10 | |
Total shareholders' equity ( 23100/1.10) | $21,000 | |
Less: Retained earnings | (6,700) | |
Common stock | 14,300 | |
Computation of Patents | ||
Total assets = Total liabilities and shareholders' equity | $44,100 | |
Total assets without patents | 38,100 | |
Patents | 6,000 | |
Note- | ||
(i) Raw materials and work in process inventory shall be classified under | ||
current assets. | ||
(ii) Investments which are to sold within a period of one year or less shall be | ||
classified as current assets.Long term investments are such investments | ||
which a company intends to hold for more than one year. | ||
(iii) Notes payable shall be classified as under | ||
Current liabilities - notes payble due in 12 months | $1,350 | |
Long terms liabilities - notes payable due after 12 months |
4,050 | |
Total Notes payable | 5,400 | |
(iv) Deferred revenue shall be classified as under | ||
Current liabilities - deferred revenue to be recognized as revenue in next 12 months |
$2,200 | |
Long terms liabilities - deferred revenue to be recognized as revenue in next 12 months | 2,200 | |
Total deferred revenue | 4,400 |
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller....
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. $ 1,950 4,900 (1,100) 6,700 1,9ee 14,350 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in woes) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated...
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. $ 2,750 6,500 (1,900) 7,500 2,700 17,550 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated...
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. $ 1,750 4,500 (900) 6,500 1,700 13,550 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in 000 s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment...
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Patent $ 2,250 5,500 (1,400) 7,000...
Please help!! The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in 000s) Assets Current assets: Cash $ 1,750 Accounts receivable 4,500 Allowance for uncollectible accounts (900 ) Finished goods inventory 6,500 Prepaid expenses 1,700 Total current assets 13,550 Long-term assets: Investments 3,500 Raw materials and work in...
Can somebody help me fix this so it's all right? The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process...
Problem 3-8 (Algo) Balance sheet; errors; missing amounts [LO3-2, 3-3] The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. Current Assets Cash $2,150 A/R 5,300 Allowance for Uncollectile accounts (1,300) Finished goods inventory 6,900 Prepaid expenses 2,100 total current assets 15,150 Long--term assets: Investments 3,900 Raw materials and work-in-process inv 3,150 Equipment 18,000 Accum. Depreciation (5,100) Patent (net)...
please complete balance sheet Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 12. That Is, total liabilities are 120% of total shareholders' equity, Retained earnings at the beginning of the year was $5,600. Net Income for 2021 was $1,950 and $500 in...
As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. $ 2,250 4,750 (700) 6,900 4,400 17,600 Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 2005) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Franchise Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts...
As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. Henderson Manufacturing Company Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash $ 1,950 Accounts receivable 4,450 Allowance for uncollectible accounts (700 ) Finished goods inventory 6,300 Prepaid expenses 4,100 Total current assets 16,100 Long-term assets: Investments 3,700 Raw materials and work in process inventory 4,600 Equipment 23,000 Accumulated depreciation–equipment (9,700 ) Franchise ? Total assets...