NOVAK CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 488,570 Current liabilities $ 383,570 Investments 643,570 Long-term liabilities 1,003,570 Property, plant, and equipment 1,723,570 Stockholders’ equity 1,773,570 Intangible assets 305,000 $3,160,710 $3,160,710 The following information is presented. 1. The current assets section includes cash $153,570, accounts receivable $173,570 less $13,570 for allowance for doubtful accounts, inventories $183,570, and unearned rent revenue $8,570. 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 $43,570; investments in common stock, short-term $83,570 and long-term $273,570; and bond sinking fund $242,860. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,043,570 less accumulated depreciation $363,570, equipment $453,570 less accumulated depreciation $183,570, land $503,570, and land held for future use $270,000. 4. Intangible assets include a franchise $168,570, goodwill $103,570, and discount on bonds payable $32,860. 5. Current liabilities include accounts payable $143,570, notes payable-short-term $83,570 and long-term $123,570, and income taxes payable $32,860. 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 73,570 shares for $441,420, and common stock, $1.00 par value, authorized 400,000 shares, issued 103,570 shares at an average price of $10. In addition, the corporation has retained earnings of $296,450. 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.) NOVAK CORPORATION Balance Sheet December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Assets Liabilities and Stockholders' Equity

NOVAK CORPORATION BALANCE SHEET DECEMBER 31, 2020 Current assets $ 488,570 Current liabilities $ 383,570 Investments 643,570 Long-term liabilities 1,003,570 Property, plant, and equipment 1,723,570 Stockholders’ equity 1,773,570 Intangible assets 305,000 $3,160,710 $3,160,710 The following information is presented. 1. The current assets section includes cash $153,570, accounts receivable $173,570 less $13,570 for allowance for doubtful accounts, inventories $183,570, and unearned rent revenue $8,570. 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 $43,570; investments in common stock, short-term $83,570 and long-term $273,570; and bond sinking fund $242,860. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,043,570 less accumulated depreciation $363,570, equipment $453,570 less accumulated depreciation $183,570, land $503,570, and land held for future use $270,000. 4. Intangible assets include a franchise $168,570, goodwill $103,570, and discount on bonds payable $32,860. 5. Current liabilities include accounts payable $143,570, notes payable-short-term $83,570 and long-term $123,570, and income taxes payable $32,860. 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 73,570 shares for $441,420, and common stock, $1.00 par value, authorized 400,000 shares, issued 103,570 shares at an average price of $10. In addition, the corporation has retained earnings of $296,450. 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.) NOVAK CORPORATION Balance Sheet December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Assets Liabilities and Stockholders' Equity

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

See similar textbooks

Related questions

Concept explainers

Question

Presented below is the balance sheet of Novak Corporation for the current year, 2020.

NOVAK CORPORATION BALANCE SHEET DECEMBER 31, 2020
Current assets	$ 488,570	Current liabilities	$ 383,570
Investments	643,570	Long-term liabilities	1,003,570
Property, plant, and equipment	1,723,570	Stockholders’ equity	1,773,570
Intangible assets	305,000		$3,160,710
	$3,160,710

The following information is presented.

1.		The current assets section includes cash $153,570, accounts receivable $173,570 less $13,570 for allowance for doubtful accounts, inventories $183,570, and unearned rent revenue $8,570. 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 $43,570; investments in common stock, short-term $83,570 and long-term $273,570; and bond sinking fund $242,860. The cost and fair value of investments in common stock are the same.
3.		Property, plant, and equipment includes buildings $1,043,570 less accumulated depreciation $363,570, equipment $453,570 less accumulated depreciation $183,570, land $503,570, and land held for future use $270,000.
4.		Intangible assets include a franchise $168,570, goodwill $103,570, and discount on bonds payable $32,860.
5.		Current liabilities include accounts payable $143,570, notes payable-short-term $83,570 and long-term $123,570, and income taxes payable $32,860.
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 73,570 shares for $441,420, and common stock, $1.00 par value, authorized 400,000 shares, issued 103,570 shares at an average price of $10. In addition, the corporation has retained earnings of $296,450.

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.)

NOVAK CORPORATION
Balance Sheet
December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020

Assets

Liabilities and Stockholders' Equity

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.