The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2013 Assets Buildings $ 750,000 Land 250,000 Cash 60,000 Accounts receivable (net) 120,000 Inventories 240,000 280,000 Machinery Patent (net) 100,000 Investment in marketable equity securities 60,000 Total assets $1,860,000 Liabilities and Shareholders' Equity $ 215,000 Accounts payable Accumulated depreciation 255,000 Notes payable Appreciation of inventories 500,000 80,000 Common stock, authorized and issued 100,000 shares of no par stock 430,000 Retained earnings 380,000 Total liabilities and shareholders' equity $1,860,000 Additional Information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained carnings. 2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year. 4. Inventories are recorded at current resale valuc. The original cost of the inventories is $160,000. | Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2013.
The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2013 Assets Buildings $ 750,000 Land 250,000 Cash 60,000 Accounts receivable (net) 120,000 Inventories 240,000 280,000 Machinery Patent (net) 100,000 Investment in marketable equity securities 60,000 Total assets $1,860,000 Liabilities and Shareholders' Equity $ 215,000 Accounts payable Accumulated depreciation 255,000 Notes payable Appreciation of inventories 500,000 80,000 Common stock, authorized and issued 100,000 shares of no par stock 430,000 Retained earnings 380,000 Total liabilities and shareholders' equity $1,860,000 Additional Information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained carnings. 2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year. 4. Inventories are recorded at current resale valuc. The original cost of the inventories is $160,000. | Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2013.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Transcribed Image Text:The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2013
Assets
Buildings
S 750,000
Land
250,000
Cash
60,000
Accounts receivable (net)
120,000
Inventories
Machinery
Patent (net)
Investment in marketable equity securities
240,000
280,000
100,000
60,000
$1,860,000
Total assets
Liabilities and Shareholders' Equity
$ 215,000
Accounts payable
Accumulated depreciation
255,000
Notes payable
500,000
Appreciation of inventories
80,000
Common stock, authorized and issued
100,000 shares of no par stock
430,000
Retained earnings
380,000
Total liabilities and shareholders' equity
$1,860,000
Additional Information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is
holding for future sale. The land originally cost $50,000 but, duc to a significant increase in market value,
is listed at $120,000. The increase in the land account was credited to retained camings.
2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of
which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due
in the coming year.
4. Inventories are recorded at current resale value. The original cost of the inventories is $160,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2013.
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