The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2024 ($ in 000) Assets Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds) Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 1,250 3,500 (400) 6,000 1,200 11,550 3,000 2,250 15,000 (4,200) ? $? $ 5,200 4,000 100 3,000 12,300 5,500 200 ? ? $? Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders' equity. Retained earnings at the beginning of the year was $4,000. Net income for 2024 was $1,560, and $560 in cash dividends were declared and paid to shareholders. 2. Management intends to sell the investments in the next six months. 3. Interest on both the notes and the bonds is payable annually. 4. The notes payable are due in annual installments of $1,000 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.
The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2024 ($ in 000) Assets Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds) Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 1,250 3,500 (400) 6,000 1,200 11,550 3,000 2,250 15,000 (4,200) ? $? $ 5,200 4,000 100 3,000 12,300 5,500 200 ? ? $? Additional information ($ in 000s): 1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders' equity. Retained earnings at the beginning of the year was $4,000. Net income for 2024 was $1,560, and $560 in cash dividends were declared and paid to shareholders. 2. Management intends to sell the investments in the next six months. 3. Interest on both the notes and the bonds is payable annually. 4. The notes payable are due in annual installments of $1,000 each. 5. Deferred revenue will be recognized as revenue equally over the next two fiscal years. 6. The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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prepare a complete corrected classified balance sheet
Transcribed Image Text:The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As
accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.
Current assets:
Cash
Accounts receivable
Allowance for uncollectible accounts
Finished goods inventory
Prepaid expenses
Total current assets
Long-term assets:
SANDERSON MANUFACTURING COMPANY
Balance Sheet
At December 31, 2024
($ in 000s)
Assets
Investments
Raw materials and work in process inventory
Equipment
Accumulated depreciation
Patent (net)
Total assets
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
Notes payable
Interest payable (on notes)
Deferred revenue
Total current liabilities
Long-term liabilities:
Bonds payable
Interest payable (on bonds)
Shareholders' equity:
Common stock
Retained earnings
Total liabilities and shareholders' equity
$ 1,250
3,500
(400)
6,000
1,200
11,550
3,000
2,250
15,000
(4,200)
?
$ ?
$ 5,200
4,000
100
3,000
12,300
5,500
200
?
?
$?
Additional information ($ in 000s):
1. Certain records that included the account balances for the patent and shareholders' equity items were lost. However, the
controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity
ratio of 1.2. That is, total liabilities are 120% of total shareholders' equity. Retained earnings at the beginning of the year was
$4,000. Net income for 2024 was $1,560, and $560 in cash dividends were declared and paid to shareholders.
2. Management intends to sell the investments in the next six months.
3. Interest on both the notes and the bonds is payable annually.
4. The notes payable are due in annual installments of $1,000 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.
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