Question

Presented below is the balance sheet for HHD, Inc., at December 31, 2021. Current assets Investments Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 652,000 539,000 2,364,000 226,000 $3,781,000 $ 452,000 749,000 2,580,000 $3,781,000 The captions shown in the summarized statement above include the following: a. Current assets: cash, $163,000; accounts receivable (net), $213,000; inventory, $238,000; and prepaid insurance, $38,000. b. Investments: investment in equity securities, short term, $103,000, and long term, $173,000; and restricted cash, long term, $263,000. c. Property, plant, and equipment: buildings, $1,630,000 less accumulated depreciation, $613,000; equipment, $630,000 less accumulated depreciation, $213,000; and land, $930,000. d. Intangible assets net of amortization: patent, $123,000; and copyright, $103,000. e. Current liabilities: accounts payable, $113,000; notes payable, short term, $163,000, and long term, $103,000; and income taxes payable, $73,000. f. Long-term liabilities: bonds payable due 2023. g. Shareholders' equity: common stock, $1,650,000; retained earnings, $930,000. Five hundred thousand shares of no par common stock are authorized, of which 330,000 shares were issued and are outstanding Required: Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

HHD
Classified Balance Sheet
Assets	Amount $	Amount $
Current Assets
Cash	163,000.00
Investment in equity securities	103,000.00
Accounts receivable	213,000.00
Inventory	238,000.00
Prepaid Insurance	38,000.00
Current Assets		755,000.00
Long Term Investments
Investment in equity securities	173,000.00
Long Term Investments		173,000.00
Plant, Property & Equipment
Land		930,000.00
Building	1,630,000.00
Less: Accumulated Depreciation- Building	(613,000.00)	1,017,000.00
Equipment	630,000.00
Less: Accumulated Depreciation-Equipment	(213,000.00)	417,000.00
Plant, Property & Equipment (net)		2,364,000.00
Intangible Assets
Patent (net)	123,000.00
Copyright (net)	103,000.00
Intangible Assets		226,000.00
Other Assets
Restricted cash	263,000.00
Other Assets		263,000.00
Total Assets		3,781,000.00
Liabilities & Stockholder's Equity
Liabilities	Amount $	Amount $
Current Liabilities
Accounts payable	113,000.00
Notes payable	163,000.00
Income Taxes Payable	73,000.00
Current Liabilities		349,000.00
Non Current Liabilities
Notes payable	103,000.00
Bonds payable	749,000.00
Non Current Liabilities		852,000.00
Total Liabilities		1,201,000.00
Stockholder's Equity
Common Stock (500,000 shares of no par authorized, 330,000 issued and outstanding)	1,650,000.00
Retained Earnings	930,000.00
Total Stockholder's Equity		2,580,000.00
Total Liabilities & Stockholder's Equity		3,781,000.00