Question

resented below is the balance sheet of Bramble Corporation for the current year, 2020.

BRAMBLE CORPORATION BALANCE SHEET DECEMBER 31, 2020
Current assets		$  489,050		Current liabilities		$  384,050
Investments		644,050		Long-term liabilities		1,004,050
Property, plant, and equipment		1,724,050		Stockholders’ equity		1,774,050
Intangible assets		305,000				$3,162,150
		$3,162,150

The following information is presented.

1.		The current assets section includes cash $154,050, accounts receivable $174,050 less $14,050 for allowance for doubtful accounts, inventories $184,050, and unearned rent revenue $9,050. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value.
2.		The investments section includes the cash surrender value of a life insurance contract $44,050; investments in common stock, short-term $84,050 and long-term $274,050; and bond sinking fund $241,900. The cost and fair value of investments in common stock are the same.
3.		Property, plant, and equipment includes buildings $1,044,050 less accumulated depreciation $364,050, equipment $454,050 less accumulated depreciation $184,050, land $504,050, and land held for future use $270,000.
4.		Intangible assets include a franchise $169,050, goodwill $104,050, and discount on bonds payable $31,900.
5.		Current liabilities include accounts payable $144,050, notes payable-short-term $84,050 and long-term $124,050, and income taxes payable $31,900.
6.		Long-term liabilities are composed solely of 7% bonds payable due 2028.
7.		Stockholders’ equity has preferred stock, no par value, authorized 200,000 shares, issued 74,050 shares for $444,300, and common stock, $1.00 par value, authorized 400,000 shares, issued 104,050 shares at an average price of $10. In addition, the corporation has retained earnings of $289,250.

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.

Answer 1

Bramble Corporation Balance Sheet As of December 31, 2020 Assets Current Assets Cash Investments in common stock, short-term Accounts Receivable Less: Allowance for doubtful accounts Inventory Total Current Assets 154,050 84,050 174,050 (14,050) 160,000 184,050 582,150 Long-term Investments Investments in common stock, long-term Bond sinking fund Cash surrender value of insurance Land held for future use Total Long-term Investments 274,050 241,900 44,050 270,000 830,000 504,050 Property, Plant & Equipment Land Buildings Less: Accumulated Depreciation-Buildings Equipment Less: Accumulated Depreciation Equipment Property, Plant & Equipment, Net 680,000 1,044,050 (364,050) 454,050 (184,050) 270,000 1,454,050 Intangible Assets Franchise Goodwill Total Intangible Assets Total Assets 169,050 104,050 273,100 3,139,300 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Notes Payable, short-term Income taxes Payable Unearned Rent Revenue Total Current Liabilities 144,050 84,050 31,900 9,050 269,050 124,050 Long-term Liabilties Notes Payable, long-term Bonds Payable, 7%, due 2028 Less: Discount on Bonds Payable Total Long-term Liabilties Total Liabilties 1,004,050 (31,900) 972,150 1,096,200 1,365,250 Stockholders Equity Paid in Capital Preferred Stock Common Stock Paid in Capital in Excess of Par-Common Stock Total Paid in Capital Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 444,300 104,050 936,450 =104,050 *1 =104,050 *(10-1) 1,484,800 289,250 1,774,050 3,139,300