Question

Problem 16-06A

The following data, presented in alphabetical order, are taken from the records of Sandhill Corporation.

Accounts payable		$240,000
Accounts receivable		140,100
Accumulated depreciation—buildings		180,400
Accumulated depreciation—equipment		52,000
Allowance for doubtful accounts		5,200
Bonds payable (10%, due 2028)		500,300
Buildings		949,000
Cash		42,200
Common stock ($10 par value; 499,000 shares authorized, 149,100 shares issued)		1,491,000
Dividends payable		79,200
Equipment		275,200
Goodwill		200,000
Income taxes payable		120,300
Inventory		169,900
Investment in Mara common stock (30% ownership), at equity		380,100
Investment in Sasse common stock, at fair value		278,700
Land		389,900
Notes payable (due 2021)		70,000
Paid-in capital in excess of par—common stock		139,400
Premium on bonds payable		40,800
Prepaid insurance		16,000
Retained earnings		103,100
Short-term investments, at fair value		180,600

The investment in Sasse common stock is considered to be a long-term security.

Prepare a classified balance sheet at December 31, 2020. (List assets in order of liquidity. List Property, plant and equipment list in order of land, buildings and equipment.)

Problem 16-06A

The following data, presented in alphabetical order, are taken from the records of Sandhill Corporation.

Accounts payable		$240,000
Accounts receivable		140,100
Accumulated depreciation—buildings		180,400
Accumulated depreciation—equipment		52,000
Allowance for doubtful accounts		5,200
Bonds payable (10%, due 2028)		500,300
Buildings		949,000
Cash		42,200
Common stock ($10 par value; 499,000 shares authorized, 149,100 shares issued)		1,491,000
Dividends payable		79,200
Equipment		275,200
Goodwill		200,000
Income taxes payable		120,300
Inventory		169,900
Investment in Mara common stock (30% ownership), at equity		380,100
Investment in Sasse common stock, at fair value		278,700
Land		389,900
Notes payable (due 2021)		70,000
Paid-in capital in excess of par—common stock		139,400
Premium on bonds payable		40,800
Prepaid insurance		16,000
Retained earnings		103,100
Short-term investments, at fair value		180,600

The investment in Sasse common stock is considered to be a long-term security.

Prepare a classified balance sheet at December 31, 2020. (List assets in order of liquidity. List Property, plant and equipment list in order of land, buildings and equipment.)

Answer 1

Balance Sheet
December 31, 2020
Assets
Current Assets
Cash		$ 42,200
Short- term stock investments, At fair value		$ 180,600
Accounts receivable	$ 140,100
Less: Allowance for doubtfulAccounts	$ 5,200	$ 134,900
Inventory		$ 169,900
Prepaid insurance		$ 16,000
Total current assets			$ 543,600
Investments
Investment in Mara common stock (30% of ownership) at Equity		$ 380,100
				Investment in Sasse common stock at Fair value		$ 278,700
Total Investment			$ 658,800
Property, plant, and equipment
Land		$ 389,900
Building	$ 949,000
Less: Acc. Dep. - Building	$ 180,400	$ 768,600
Equipment	$ 275,200
Less: Acc. Dep. - Equipment	$ 52,000	$ 223,200
Total Property, plant, and equipment			$ 1,381,700
Intangible assets
Goodwill			$ 200,000
Total Assets			$ 2,784,100
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable		$ 240,000
Notes Payable		$ 70,000
Income taxes Payable		$ 120,300
Dividends Payable		$ 79,200
Total Current Liabilities			$ 509,500
Long-term Liabilities
Bonds payable, 10%, due 2028		$ 500,300
Plus: Premium on bonds payable		$ 40,800
Total Long-term Liabilities			$ 541,100
Total Liabilities			$ 1,050,600
Stockholders' Equity
Paid-in capital
Common stock, $10 par value; 499,000 shares authorized, 149,100 shares issued outstanding		$ 1,491,000
				Paid-in capital in excess of par value		$ 139,400
Total paid-in capital		$ 1,630,400
Retained Earnings		$ 103,100
Total paid-in capital and retained earnings		$ 1,733,500
Add: Unrealized gain on available-for-sale securities		$ 0
Total stockholders’ equity			$ 1,733,500
Total liabilities and stockholders’ Equity			$ 2,784,100