Question

3 Current assets Investments Property, plant, and equipment Intangible assets SARGENT CORPORATION BALANCE SHEET DECEMBER 31, 2012 $ 485,000 Current liabilities 640,000 Long-term liabilities 1,720,000 Stockholders' equity 305,000 $3,150,000 $ 380,000 1,000,000 1,770,000 $3,150.000 The following information is presented. 1. The current assets section includes: cash $150,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned revenue $5,000. Inventories are stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes: the cash surrender value of a life insurance contract $40,000; investments in common stock, short-term (trading) $80,000 and long-term (available-for-sale) $270,000; and bond sinking fund $250,000. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes: buildings $1,040,000 less accumulated depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000; land $500,000; and land held for future use $270,000. 4. Intangible assets include: a franchise $165,000; goodwill $100,000; and discount on bonds payable $40,000. 5. Current liabilities include: accounts payable $140,000; notes payable-short-term $80,000 and long- term $120,000; and taxes payable $40,000. 6. Long-term liabilities are composed solely of 7% bonds payable due 2020. 7. Stockholders' equity has: preferred stock, no par value, authorized 200,000 shares, issued 70,000 shares for $450,000; and common stock, $1.00 par value, authorized 400,000 shares, issued 100,000 shares at an average price of $10. In addition, the corporation has retained earnings of $320,000. Instructions Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. and a Balance Sheet) Lansbury Inc. had the balanc

Answer 1

SARGENT CORPORATIPON

BALANCE SHEET

DEC 31,2012

ASSETS		Amount(USD)	Liabilities		Amount(USD)
Current Assets		485000	Current Liabilities		380000
Cash	150000		Account payable	140000
Account receivable	170000		Notes-short term	80000
Less:allowance	(10000)		Notes-Long term	120000
Inventory	180000		taxes	40000
Unearned Revenue	(5000)		Long term liabilities		1000000
Investments		640000

Cash Surrender value	40000		Stock holders equity		1770000
Short term trading	80000		Preffered Stock	450000
Long term	270000		Common Stock	100000
Bond	250000		Premium On issue	10-1*100000= 900000
Property Plant and equipments		1720000	Retained earnings	320000
Building	1040000
Less: depreciation	(360000)
Equipment	450000
Less Depreciation	(180000)
Land	500000
Land held for future use	270000

Intangible Assets		305000
Franchise	165000
Goodwill	100000
Discount	40000
		$3150000			$3150000