Question

The following information is presented.

1.The current assets section includes cash $152,430, accounts receivable $172,430 less $12,430 for allowance for doubtful accounts, inventories $182,430, and unearned rent revenue $7,430. 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 $42,430; investments in common stock, short-term $82,430 and long-term $272,430; and bond sinking fund $245,140. The cost and fair value of investments in common stock are the same.

3.Property, plant, and equipment includes buildings $1,042,430 less accumulated depreciation $362,430, equipment $452,430 less accumulated depreciation $182,430, land $502,430, and land held for future use $270,000.

4.Intangible assets include a franchise $167,430, goodwill $102,430, and discount on bonds payable $35,140.

5.Current liabilities include accounts payable $142,430, notes payable-short-term $82,430 and long-term $122,430, and income taxes payable $35,140.

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 72,430 shares for $434,580, and common stock, $1.00 par value, authorized 400,000 shares, issued 102,430 shares at an average price of $10. In addition, the corporation has retained earnings of $313,550.

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

Presented below is the balance sheet of Buffalo Corporation for the current year, 2020 BUFFALO CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets 5487.430 Current liabilities Investments 642430 Long-term liabilities Property, plant, and equipment 1.722.430 Stockholders' equity Intangible assets 305.000 $3,157290 $382.430 1,002,430 1.772.430 $3.157.290 The following information is presented 1. The current assets section includes cash $152,430, accounts receivable $172.430 less $12430 for allowance for doubtful accounts, inventories $182.430, and unearned rent revenue 57.430. 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 542.430, Investments in common stock, short-term $82.430 and long term $272.430, and bond sinking fund $245,140. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1.042.430 less accumulated depreciation $362.430, equipment $452.430 less accumulated depreciation $182.430, land $502.430, and and held for future use $270,000 4. Intangible assets include a franchise 167.430goodwill $102.430, and discount on bonds payable $35.140 5. Current liabilities include accounts payable $142430, notes payable short-term $82,430 and long-term $122.430, and income taxes payable $35.140. 6. Long term abilities are composed solely of 7% bonds payable due 2028 7. Stockholders' equity has preferred stock, no par value authorized 200.000 shares, issued 72.430 shares for $434.580, and common stock. $1.00 par valus, authorized 400.000 Issued 102.430 shares at an average price of $10. In addition, the corporation has retained earnings of $313.550 Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (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

$152430 Answer Page No 0 Balance sheet Particular Amount 1 Amount Amount Current asset Cash Equity investments (Trading) $ 82430 Accounts receivable $142,430 Allowance for doubtful accounts ($ 13,430) $160,000 Inventory (lower g Fifo conformarbet) $182,430 Total current assets $577290 leng teman inventore Equity investment (available for ooke Xiat Purusha $ 272,430 Bond sinking fund $245,140 cash surrender value of life insurance $ 42,430 Land held for future ure $ 270,000 $830,000 Properly plant and equipment hand $502,430 Buildings $1042430) Accumulated depreciation (€ 362430) $ 680,000 Equipment $452430 Accumulated depreciation (* 182,430 $ 270,000 $1452 430

$ 167430 $102430 860 Page No ③ Particular Amount Amount Amount Tantangible avec les Franchirse Goodwill Total assets $3129580 kiabilitacione sockholders egyetlen Current liabilities Accounts payable $142430 Notes payable $ 82,430 Income taxes payable $ 35,140 Uncanned orent orevenue $ 7430 Total current liabilities Long term liabilities . Hlot es payable $122430 44. bonds payable due 2028 $1002430 Discount on bonds payable $35140) $96.7390 $1089720 Total liabilities $1357150 stockholders comuniky Beberred stock, no por facescorhancs authorised, 72188 $434580 $267430 I shares issued & outstanding

Page, no @ Amount Particular Amount | Amount Common sfacts, Ipar melur, (400,000 $102430 Shares authorized , 102430 shares issued outstanding) Paid in capital in excess of par -Commensteek $921870 $ 1458880 Retained earnings $313550 Total stockholden's equity Total liabilities & stockholder's equity 102430 X (10-1) $1772430 $3129580