In: Accounting
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.
SANDERSON MANUFACTURING COMPANY | |||||
Balance Sheet | |||||
At December 31, 2021 | |||||
($ in 000s) | |||||
Assets | |||||
Current assets: | |||||
Cash | $ | 2,150 | |||
Accounts receivable | 5,300 | ||||
Allowance for uncollectible accounts | (1,300 | ) | |||
Finished goods inventory | 6,900 | ||||
Prepaid expenses | 2,100 | ||||
Total current assets | 15,150 | ||||
Long-term assets: | |||||
Investments | 3,900 | ||||
Raw materials and work in process inventory | 3,150 | ||||
Equipment | 18,000 | ||||
Accumulated depreciation | (5,100 | ) | |||
Patent (net) | ? | ||||
Total assets | $ | ? | |||
Liabilities and Shareholders’ Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 6,100 | |||
Notes payable | 5,800 | ||||
Interest payable (on notes) | 1,000 | ||||
Deferred revenue | 4,800 | ||||
Total current liabilities | 17,700 | ||||
Long-term liabilities: | |||||
Bonds payable | 6,400 | ||||
Interest payable (on bonds) | 400 | ||||
Shareholders’ equity: | |||||
Common stock | $ | ? | |||
Retained earnings | ? | ? | |||
Total liabilities and shareholders’ equity | ? | ||||
Additional information ($ in 000s):
Required:
Prepare a complete, corrected, classified balance sheet.
(Amounts to be deducted should be indicated by a minus
sign.)