Windsor Company has decided to expand its operations. The
bookkeeper recently completed the following balance sheet in order
to obtain additional funds for expansion.
WINDSOR COMPANY |
||
Current assets | ||
Cash | $238,000 | |
Accounts receivable (net) | 348,000 | |
Inventory (lower-of-average-cost-or-market) | 409,000 | |
Equity investments (marketable)-at cost (fair value $128,000) | 148,000 | |
Property, plant, and equipment | ||
Buildings (net) | 578,000 | |
Equipment (net) | 168,000 | |
Land held for future use | 183,000 | |
Intangible assets | ||
Goodwill | 88,000 | |
Cash surrender value of life insurance | 98,000 | |
Prepaid expenses | 20,000 | |
Current liabilities | ||
Accounts payable | 143,000 | |
Notes payable (due next year) | 133,000 | |
Pension obligation | 90,000 | |
Rent payable | 57,000 | |
Premium on bonds payable | 61,000 | |
Long-term liabilities | ||
Bonds payable | 508,000 | |
Stockholders’ equity | ||
Common stock, $1.00 par, authorized 400,000 shares, issued 298,000 | 298,000 | |
Additional paid-in capital | 168,000 | |
Retained earnings | ? |
Prepare a revised balance sheet given the available information.
Assume that the accumulated depreciation balance for the buildings
is $168,000 and for the equipment, $113,000. The allowance for
doubtful accounts has a balance of $25,000. The pension obligation
is considered a long-term liability.
Answer | ||
Waterway Company |
||
Balance Sheet | ||
As at December 31, 2020 | ||
Particulars | Amount ($) | Amount ($) |
ASSETS | ||
Current Assets: | ||
Cash | $ 238,000 | |
Inventory | $ 409,000 | |
Account Receivable (Net) | $ 373,000 | |
Less: Allowance for doubtful accounts | -$ 25,000 | $ 348,000 |
Prepaid Expenses | $ 20,000 | |
Total Current Assets | $ 1,015,000 | |
Investments: | ||
Equity investments | $ 148,000 | |
Cash surrender value of life insurance | $ 98,000 | |
Property, plant and Equipment | ||
Building | $ 746,000 | |
Less: Accumulated dep | -$ 168,000 | $ 578,000 |
Equipment | $ 281,000 | |
Less: Accumulated dep | -$ 113,000 | $ 168,000 |
Land held for future use | $ 183,000 | |
Intangible Assets: | ||
Goodwill | $ 88,000 | $ 88,000 |
Total Assets | $ 2,278,000 | |
LIABILITIES AND STOCKHOLDERS EQUITY | ||
Liabilities : | ||
Current Liabilities | ||
Accounts Payable | $ 143,000 | |
Notes payable | $ 133,000 | |
Rent Payable | $ 57,000 | |
Total Current Liabilities | $ 333,000 | |
Long term liabilities: | ||
Pension Obligation | $ 90,000 | $ 90,000 |
Bonds Payable | $ 508,000 | |
Add: Premium on Bonds Payable | $ 61,000 | $ 569,000 |
Total long term liabilities | $ 659,000 | |
Total liabilities | $ 992,000 | |
Total Stockholders' Equity | ||
Common Stock | $ 298,000 | |
Additional paid in capital | $ 168,000 | |
Retained earnings ( B.F) | $ 820,000 | |
Total Stockholders' Equity | $ 1,286,000 | |
Total Liabilities and stockholders’ equity | $ 2,278,000 |
Windsor Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet...
Windsor Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. WINDSOR COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $237,000 Accounts receivable (net) 347,000 Inventory (lower-of-average-cost-or-market) 408,000 Equity investments (marketable)-at cost (fair value $127,000) 147,000 Property, plant, and equipment Buildings (net) 577,000 Equipment (net) 167,000 Land held for future use 182,000 Intangible assets Goodwill 87,000 Cash surrender value of life insurance 97,000 Prepaid...
Exercise 5-5
Windsor Company has decided to expand its operations. The
bookkeeper recently completed the following balance sheet in order
to obtain additional funds for expansion.
WINDSOR COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2020
Current assets
Cash
$232,000
Accounts receivable (net)
342,000
Inventory (lower-of-average-cost-or-market)
403,000
Equity investments (marketable)-at cost (fair value
$122,000)
142,000
Property, plant, and equipment
Buildings (net)
572,000
Equipment (net)
162,000
Land held for future use
177,000
Intangible assets
Goodwill
82,000
Cash surrender value of life insurance...
Oriole Company has decided to expand its operations. The
bookkeeper recently completed the following balance sheet in order
to obtain additional funds for expansion.
ORIOLE COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2020
Current assets
Cash
$232,500
Accounts receivable (net)
342,500
Inventory (lower-of-average-cost-or-market)
403,500
Equity investments (marketable)-at cost (fair value
$122,500)
142,500
Property, plant, and equipment
Buildings (net)
572,500
Equipment (net)
162,500
Land held for future use
177,500
Intangible assets
Goodwill
82,500
Cash surrender value of life insurance
92,500
Prepaid...
Splish Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. $231,500 341,500 402,500 141,500 571,500 161,500 176,500 SPLISH COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (marketable) at cost (fair value $121,500) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses...
Pina Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. $242,000 352,000 413,000 152,000 582,000 172,000 187,000 PINA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (marketable)-at cost (fair value $132,000) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses Current...
Bonita Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. BONITA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $242,500 Accounts receivable (net) 352,500 Inventory (lower-of-average-cost-or-market) 413,500 Equity investments (marketable)-at cost (fair value $132,500) 152,500 Property, plant, and equipment Buildings (net) 582,500 Equipment (net) 172,500 Land held for future use 187,500 Intangible assets Goodwill 92,500 Cash surrender value of life insurance 102,500 Prepaid...
Exercise 5-5 Stellar Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. $235,500 345,500 406,500 145,500 575,500 165,500 180,500 STELLAR COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (marketable)-at cost (fair value $125,500) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid...
Pina SpA has decided to expand its operations. The bookkeeper
recently completed the following statement of financial position in
order to obtain additional funds for expansion.
Pina SpA
Statement of Financial Position
December 31, 2022
Current assets
Cash
€235,500
Accounts receivable (net)
345,500
Inventory (at lower-of-average-cost-or-net
realizable value)
406,500
Trading securities—at cost (fair value
€125,500)
145,500
Property, plant, and equipment
Buildings (net)
575,500
Equipment (net)
165,500
Land held for future use
180,500
Intangible assets
Goodwill
85,500
Other identifiable assets
95,500...
Sarasota Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: SARASOTA CORP. Statement of Financial Position For the Year Ended December 31, 2020 Current assets Cash (net of bank overdraft of $50,000) $ 350,000 Accounts receivable (net) 397,000 Inventory at the lower of cost and net realizable value 461,000 FV-NI investments (at cost—fair value $140,000) 220,000 Property, plant, and equipment Buildings (net) 770,000 Equipment...
Ayayai Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion: AYAYAI CORP. Statement of Financial Position For the Year Ended December 31, 2017 Current assets Cash (net of bank overdraft of $31,000) $ 270,000 Accounts receivable (net) 349,000 Inventory at the lower of cost and net realizable value 411,000 FV-NI investments (at cost—fair value $130,000) 150,000 Property, plant, and equipment Building (net) 580,000 Equipment...