Question

Presented below is the trial balance of Scott Butler Corporation at December 31, 2017. Prepare a balance sheet at December 31, 2017, for Scott Butler Corporation. (Ignore income taxes.)

Answer 1

Solution.

Preparetion of Balance sheet.

Scott Butler Corporation
Balance sheet
31-Dec-17
Current Assets:
Cash		197,000
Treding Securities		153,000
Account receivable	435,000
Less: Allowances for doubtful accounts	(25,000)	410,000
Inventories		597,000
Total current assets			1,357,000
Longterm investments:
Investment in bonds		299,000
Investments in stocks		277,000
Total long-term investments			576,000
Property,Plant, and equipment:
Land		260,000
Buildings	1,040,000
Less: Accumulated depreciation	(152,000)	888,000
Equipment	600,000
Less: Accumulated depreciation-Equipment	(60,000)	540,000
Total property,plant, and equipment			1,688,000
Intengiable assets:
Franchise		160,000
Patent		195,000
Total intangiable assets			355,000
Total assets			3,976,000
Liabiliuties and Stockholders Equity:
Current libilities:
Account payable		455,000
Short term notes payable		90,000
Dividends payable		136,000
Accured libilities		96,000
Total current libilities			777,000
Long term debt:
Long term notes payable		900,000
Bond payable		1,000,000
Total longterm libilities			1,900,000
Total libilities			2,677,000
Stockholder equity:
Paid-in-capital:
Common stock ($5 par)	1,000,000
Additional paid-in-capital	80,000	1,080,000
Retained earnings		41,000
Total paid-in-capital and retained earnings		1,490,000
Less: Treduary stock		(191,000)
Total stockholders equity			1,299,000
Total liabilities and stockholders equity			3,976,000

Working.

Computation of Retained Earnings:
Sales	8,100,000
Investment revenue	63,000
Extraordinary gain	80,000
Cost of goods sold	(4,800,000)
Selling expenses	(2,000,000)
Administrative expenses	(900,000)
Interest expense	(211,000)
Net income	332,000
Beginning retained earnings	78,000
Net income	332,000
Ending retained earnings	410,000