Question

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 Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity 81,500 91,500 13,500 136,500 126,500 83,500 50,500 54,500 501,500

Answer 1

Solution Balance sheet for the year ended December 31, 2020 + Amount Amount ASSETS Current Assets.. cash &31,500 121.500 Cquity investment Account Receivable 360000-yol Tex: Allowance for Doubtful % (18.500) 341,500 Inventory 4,02,500 prepaid Expenses 13,500 Long term Investments Land "cash surrender value of Insurance 268,000 property plant & -csuiment Buibling e Accumulated Depreciation IC1, 500) 571,500 Equipment 268,000 (-) Accumulated Depreciation (106,500) IGI 500 176 500 91500 733,000 Intangible -fesets: Good will 81,500 Total Asset $ 21,93,000

Amount Amount LIABILITES & EQUITY Current liabiliter :- nccounts payable Notes payable Rent payable 136 500 186 500 50.500 313 500 long-term liabilites 501,500 Bonds payable 54,500 556000 Add: premium On Bonds payable 83,5DO pension obligation Stock holders fouity 291500 common stock - Additional Paid-in-capita161500 453,000 161500 Land Retained earnings 787500 Totaltabilities & Equity $ 21,93,00 - aldootat