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The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance...

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings $ 768,000
Land 304,000
Cash 78,000
Accounts receivable (net) 156,000
Inventory 276,000
Machinery 298,000
Patent (net) 118,000
Investment in equity securities 96,000
Total assets $ 2,094,000
Liabilities and Shareholders' Equity
Accounts payable $ 233,000
Accumulated depreciation 273,000
Notes payable 536,000
Appreciation of inventory 98,000
Common stock (authorized and issued
118,000 shares of no par stock)		 472,000
Retained earnings 482,000
Total liabilities and shareholders' equity $ 2,094,000


Additional information:

  1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $68,000 but, due to a significant increase in market value, is listed at $156,000. The increase in the land account was credited to retained earnings.
  2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $38,000 of which will be sold in the coming year. The remainder will be held indefinitely.
  3. Notes payable are all long term. However, a $280,000 note requires an installment payment of $70,000 due in the coming year.
  4. Inventory is recorded at current resale value. The original cost of the inventory is $178,000.


Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)
  

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Expert Solution

Answer:

HUBBARD CORPORATION
Balance Sheet
As on December 31,2021
Amount ($) Amount ($)
Assets
Current Assets
Cash 78000
Marketable securities 38000
Accounts receivable (net) 156000
Inventories 178000
Total Current Assets 450000
Investments:
Marketable Securities (96000-38000) 58000
Land held for sale 68000
Total Investment 126000
Property Plant and Equipment
Land (304000-68000-(156000-68000)) 148000
Building 768000
Machinary 298000
1214000
Less: Accumulated depreciation Net property plant and equipment 273000 941000
Intangible assets
Patents 118000
Total Assets 1635000
Liabilities and Shareholders Equity
Current Liabilities
Accounts payable 233000
Current maturities of longterm debt 70000
Total current liabilities 303000
Long term liabilities
Notes payable (536000-70000) 466000
Shareholders Equity
Common Stock 472000
Retained earnings (482000-88000) 394000 866000
Total liabilities and shareholders equity 1635000

ekkarill92 answered 3 years ago
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