Presented below is the balance sheet for HHD, Inc., at December 31, 2018.Balance sheetpreparation● LO3–2 , LO3–3Current assets $ 600,000Investments 500,000Property, plant, and equipment 2,000,000Intangible assets 200,000Total assets $3,300,000Current liabilities $ 400,000Long-term liabilities 1,100,000Shareholders’ equity 1,800,000Total liabilities and shareholders’ equity $3,300,000The captions shown in the summarized statement above include the following:a. Current assets: cash, $150,000; accounts receivable, $200,000; inventories, $225,000; and prepaid insurance, $25,000.b. Investments: investments in common stock, short term, $90,000, and long term, $160,000; and restrictedcash, long term, $250,000.c. Property, plant, and equipment: buildings, $1,500,000 less accumulated depreciation, $600,000; equipment,$500,000 less accumulated depreciation, $200,000; and land, $800,000.d. Intangible assets: patent, $110,000; and copyright, $90,000.e. Current liabilities: accounts payable, $100,000; notes payable, short term, $150,000, and long term, $90,000;and taxes payable, $60,000.f. Long-term liabilities: bonds payable due 2023.g. Shareholders’ equity: common stock, $1,000,000; retained earnings, $800,000. Five hundred thousand sharesof no par common stock are authorized, of which 200,000 shares were issued and are outstanding.Required:Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2018.
Presented below is the
Balance sheet
preparation
● LO3–2 , LO3–3
Current assets $ 600,000
Investments 500,000
Property, plant, and equipment 2,000,000
Intangible assets 200,000
Total assets $3,300,000
Current liabilities $ 400,000
Long-term liabilities 1,100,000
Shareholders’ equity 1,800,000
Total liabilities and shareholders’ equity $3,300,000
The captions shown in the summarized statement above include the following:
a. Current assets: cash, $150,000;
b. Investments: investments in common stock, short term, $90,000, and long term, $160,000; and restricted
cash, long term, $250,000.
c. Property, plant, and equipment: buildings, $1,500,000 less accumulated
$500,000 less accumulated depreciation, $200,000; and land, $800,000.
d. Intangible assets: patent, $110,000; and copyright, $90,000.
e. Current liabilities: accounts payable, $100,000; notes payable, short term, $150,000, and long term, $90,000;
and taxes payable, $60,000.
f. Long-term liabilities: bonds payable due 2023.
g. Shareholders’ equity: common stock, $1,000,000;
of no par common stock are authorized, of which 200,000 shares were issued and are outstanding.
Required:
Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2018.
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