Question

Your answer is partially correct. Presented below is the balance sheet of Grouper Corporation for the current year, 2020. GROUPER CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 489,990 Current liabilities Investments 644,990 Long-term liabilities Property, plant, and equipment 1,724,990 Stockholders' equity Intangible assets 305,000 $3,164,970 $ 384,990 1,004,990 1,774,990 $3,164,970 2. The following information is presented. 1. The current assets section includes cash $154,990, accounts receivable $174,990 less $14,990 for allowance for doubtful accounts, inventories $184,990, and unearned rent revenue $9,990. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 2 The investments section includes the cash surrender value of a life insurance contract $44,990; investments in common stock, short-term $84,990 and long-term $274,990; and bond sinking fund $240,020. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,044,990 less accumulated depreciation $364,990, equipment $454,990 less accumulated depreciation $184,990, land $504,990, and land held for future use $270,000. 4. Intangible assets include a franchise $169,990, goodwill $104,990, and discount on bonds payable $30,020. 5. Current liabilities include accounts payable $144,990, notes payable-short-term $84,990 and long-term $124,990, and income taxes payable $30,020. 6. Long-term liabilities are composed solely of 7% bonds payable due 2028. 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 74,990 shares for $449,940, and common stock, $1.00 par value, authorized 400,000 shares, issued 104,990 shares at an average price of $ 10. In addition, the corporation has retained earnings of $275,150. Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

Balance Sheet As on December 31, 2020 Particulars Amount ($) Amount ($) Amount ($) Assets Current Assets: Cash 1,54,990 Accounts Receivable 1,74,990 Less: Allowance for doubtful debts -14,990 Net Receivable 1,60,000 Inventories 1,84,990 Short-term investment in stock 84,990 Cash value of Insurance 44,990 Total Current Assets 6,29,960 Non-Current Assets Investment in Stock, Long-term 2,74,990 Bond sinking fund 2,40,020 PPE Building 10,44,990 Less: Accumulated Depreciation -3,64,990 6,80,000 Equipment 4,54,990 Less: Accumulated Depreciation -1,84,990 2,70,000 Land 5,04,990 land held for future use 2,70,000 Intangible assets Franchise 1,69,990 Goodwill 1,04,990 Total Non-Current Assets 25,14,980 Total Assets 31,44,940

1,44,990 84,990 30,020 9,990 2,69,990 1,24,990 10,04,990 -30,020 Liabilities and Equities: Liabilities Accounts Payable Notes Payable -Short term Income tax payable Unearned Rent Revenue Total Current liabilities Notes Payable -Long term 7% Bonds Payable Less: Discount on Bonds Payable Net Bonds Payable Preference Share Capital Total Non-Current liabilities Total Liabilities Equities Common Stock Additional Paid-in-Capital Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders' Equity 9,74,970 4,49,940 15,49,900 18,19,890 1,04,990 9,44,910 2,75,150 13,25,050 31,44 940

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