Question

Chapter 5 Homework Question 7 of 7 < - / 1 View Policies Current Attempt in Progress Presented below are a number of balance sheet items for Flint, Inc. for the current year, 2020. $ 128,520 181,111 303,520 15,180 $ 292,180 243,320 48,520 101,882 483,520 203,520 Goodwill Payroll Taxes Payable Bonds payable Discount on bonds payable Cash Land Notes receivable Notes payable (to banks) Accounts payable Retained earnings Income taxes receivable Notes payable (long-term) 363,520 483,520 449,220 Accumulated Depreciation-Equipment Inventory Rent payable (short-term) Income taxes payable Rent payable (long-term) Common stock, $1 par value Preferred stock, $10 par value Prepaid expenses Equipment Debt investments (trading) Accumulated Depreciation Buildings Buildings 268,520 AL 153,520 91.440 1,473,520 493.520 ? 124,520 101.150 1,603.520 270,380 1.643,520 Prepare a classified balance sheet in good form. Common stock authorized was 400.000 shares and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment)

Answer 1

FLINT INCORPORATION

BALANCE SHEET

	Amount ($)	Amount ($)	Amount ($)
Assets:
Current assets:
Cash		363,520
Notes receivable		449,220
Income tax receivable		101,150
Prepaid expenses		91,440
Debt investment		124,520
Inventory		243,320
Total current assets			1,373,170
Property Plant and Equipment:
Land		483,520
Equipment	1,473,520
Less: Accumulated depreciation	(292,180)	1,181,340
Building	1,643,520
Less: Accumulated depreciation	(270,380)	1,373,140
Total Property Plant and Equipment			3,038,000
Tangible assets:
Goodwill			128,520
Total assets			4,539,690
Liabilities and stockholders' equity
Current liabilities:
Account payable		493,520
Rent Payable		48,520
Payroll tax payable		181,111
Bond Payable	303,520
Less: Discount on bond Payable	(15,180)	288,340
Notes payable (to bank)		268,520
Income tax payable		101,882
Total current liabilities			1,381,893
Long term liabilities:
Notes payable		1,603,520
Rent Payable		483,520
Total long term liabilities			2,087,040
Stockholders' Equity
Common stock		203,520
Preferred stock		153,520
Retained earning		713,717
Total stockholders' equity			1,070,757
Total liabilities and stockholders' equity			4,539,690

Note: Retained earning is balancing figure to match total assets and total liabilities and stockholders' equity

Thank you :)