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Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $429,400. Depreciation has been recorded based on cost.

Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $429,400. Depreciation has been recorded based on cost.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $429,400. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $204,400 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $204,400 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $125,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings. Enter account name only and do not provide the descriptive information provided in the question.)
Transcribed Image Text:Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $429,400. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $204,400 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $204,400 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $125,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings. Enter account name only and do not provide the descriptive information provided in the question.)
Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable FLINT CORPORATION BALANCE SHEET DECEMBER 31, 2025 Treasury stock (50,000 shares) Cash on hand Assets Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) Equities Notes payable (Note 3) Common stock, authorized and issued, 100,000 shares, no par Retained earnings Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building $204,400 2,260,000 220,900 614,600 300,400 72,900 139,000 54,400 140,400 $4,007,000 $804,400 654,400 1,281,000 429,400 123,400 714,400 $4,007,000
Transcribed Image Text:Goodwill (Note 2) Buildings (Note 1) Inventory Land Accounts receivable FLINT CORPORATION BALANCE SHEET DECEMBER 31, 2025 Treasury stock (50,000 shares) Cash on hand Assets Assets allocated to trustee for plant expansion Cash in bank Debt investments (held-to-maturity) Equities Notes payable (Note 3) Common stock, authorized and issued, 100,000 shares, no par Retained earnings Appreciation capital (Note 1) Income tax payable Reserve for depreciation recorded to date on the building $204,400 2,260,000 220,900 614,600 300,400 72,900 139,000 54,400 140,400 $4,007,000 $804,400 654,400 1,281,000 429,400 123,400 714,400 $4,007,000
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