Question

Presented below is the trial balance of Wildhorse Corporation at December 31, 2017.

Cash Sales Debt Investments (trading) (cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue Land Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense Inventory Gain (extraordinary) Notes Payable (long-term) Equipment Bonds Payable Accumulated Depreciation-Equipment Franchises Common Stock ($5 par) Treasury Stock Patents Retained Earnings Paid-in Capital in Excess of Par $ 200,710 $ 8,101,330 154,330 4,800,000 302,710 280,710 91,330 456,330 2,001,330 66,670 261,330 1,043,710 139,710 97,330 436,330 152,000 26,330 903,670 214,670 600,710 83,670 903,710 601,330 1,003,710 60,000 160,000 1,001,330 192,330 195,000 81,710 83,710 $12,348,870 $12,348,870 Totals

Answer 1

Wild horse Corporation Balance Sheet December 31 2017
Assets
Current Assets
Cash		200,710
Trading securities		154,330
Accounts receivable	436,330
Less: Allowance for doubtful accounts	(26,330)	410,000
Inventories		600,710
Total Current assets			1,365,750
Long-term investments
Investments in bonds		302,710
Investments in stocks		280,710
Total long-term investments			583,420
Property, plant, and equipment
Land		261,330
Bulding	1,043,710
Less: Acc dep	(152,000)	891,710
Equipment	601,330
Less: Acc dep	(60,000)	541,330
Total Property plant and equip			1,694,370
Intangible assets
Franchise		160,000
Patent		195,000
Total Intangible assets			355,000
Total Assets			3,998,540
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		456,330
Short-term notes payable		91,330
Dividend payable		139,710
Accrued liabilities		97,330
Total Current liabilities			784,700
Long-term debt
Long-term notes payable		903,710
Bonds Payable		1,003,710
Total Long-term liabilites			1,907,420
Total Liabilities			2,692,120
Stockholder’s equity
Paid-in capital
Common stock ($5 par)	1,001,330
Additional paid-in capital	83,710	1,085,040
Retained earnings*		413,710
Total paid-in capital and retained earnings		1,498,750
Less: Treasury stock		(192,330)
Total stockholders’ equity			1,306,420
Total liabilities and stockholders’ equity			3,998,540
Retained earnings*
Sales	8,101,330
Investment revenue	66,670
Extraordinary gain	83,670
Cost of goods sold	(4,800,000)
Selling expenses	(2,001,330)
Administrative expenses	(903,670)
Interest expense	(214,670)
Net income	332,000
Beginning retained earnings	81,710
Net income	332,000
Ending Retained Earnings	413,710