Balance sheet preparation
• LO3–2 , LO3–3
Presented below is the balance sheet for HHD, Inc., at December 31, 2018.
The 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 restricted cash, long term, $250,000.
c. Property, plant, and equipment: buildings, $1,500,000 less
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;
Required:
Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2018.
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