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Corrections to Balance Sheet Brandt Company presents the following December 31, 2019, balance sheet: The following information is also available: 1. Current assets include cash, $3,800; accounts receivable, $18,500; notes receivable (maturity date July 1, 2024), $10,000; and land, $12,000. 2. Long-term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2022, maturity date. 3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600. 4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and treasury stock that cost $1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2020), $2,900; sinking fund for bond retirement, $7,000; and trademarks that cost $3,700 and are not impaired. 6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024), $40,000; and accrued income taxes payable, $7,200. 7. Long-term liabilities include accrued wages, $4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2020), $20,000. 8. Contributed capital includes common stock ($5 par), $11,000; and preferred stock ($100 par), $6,000. 9. Unrealized capital includes premium on bonds payable, $4,300; additional paid-in capital on preferred stock, $2,400; additional paid-in capital on common stock, $14,700; and accumulated other comprehensive income, $1,100. 10. Retained earnings includes unrestricted retained earnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and $13,000, respectively. Required: Based on the preceding information, prepare a properly classified December 31, 2019, balance sheet for Brandt.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 4, Problem 4P
Textbook Problem

Corrections to Balance Sheet Brandt Company presents the following December 31, 2019, balance sheet:

Chapter 4, Problem 4P, Corrections to Balance Sheet Brandt Company presents the following December 31, 2019, balance sheet:

The following information is also available:

  1. 1. Current assets include cash, $3,800; accounts receivable, $18,500; notes receivable (maturity date July 1, 2024), $10,000; and land, $12,000.
  2. 2. Long-term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2020 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2022, maturity date.
  3. 3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600.
  4. 4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and treasury stock that cost $1,800.
  5. 5. Other assets include prepaid insurance (which expires on November 30, 2020), $2,900; sinking fund for bond retirement, $7,000; and trademarks that cost $3,700 and are not impaired.
  6. 6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2024), $40,000; and accrued income taxes payable, $7,200.
  7. 7. Long-term liabilities include accrued wages, $4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2020), $20,000.
  8. 8. Contributed capital includes common stock ($5 par), $11,000; and preferred stock ($100 par), $6,000.
  9. 9. Unrealized capital includes premium on bonds payable, $4,300; additional paid-in capital on preferred stock, $2,400; additional paid-in capital on common stock, $14,700; and accumulated other comprehensive income, $1,100.
  10. 10. Retained earnings includes unrestricted retained earnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and $13,000, respectively.

Required:

Based on the preceding information, prepare a properly classified December 31, 2019, balance sheet for Brandt.

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Chapter 4 Solutions

Intermediate Accounting: Reporting And Analysis
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