E5-5B (Preparation of a Corrected Balance Sheet) Darling Company has decided to expand its operations.
mujionostevoE5-5B (Preparation of a Corrected Balance Sheet) Darling Company has decided to expand its operations.
The bookkeeper recently completed the balance sheet in order to obtain additional funds for expansion.
DARLING COMPANY
BALANCE SHEET
DECEMBER 31, 2014
Current assets
Cash $ 105,000
Accounts receivable (net) 411,000
Inventories at lower of average cost or market 561,000
Available-for-sale securities—at cost
(fair value $65,000) 50,000
Property, plant, and equipment
Building (net) 1,561,000
Office equipment (net) 125,000
Land held for future use 251,000
Intangible assets
Patents 128,000
Cash surrender value of life insurance 26,000
Prepaid expenses 39,000
Current liabilities
Accounts payable 367,000
Notes payable (due next month) 75,000
Pension obligation 361,000
Unearned revenue 26,000
Premium on bonds payable 36,000
Long-term liabilities
Bonds payable 1,500,000
Stockholders’ equity
Common stock, $1.00 par, authorized
1,000,000 shares, issued 610,000 610,000
Additional paid-in capital 200,000
Retained earnings ?
Instructions
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $302,000 and for the office equipment, $86,000. The allowance for doubtful accounts has a balance of $37,000. The pension obligation is considered a long-term liability.
12 years ago
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