In: Accounting
Midway, Inc. | ||||
December 31, 2014 | ||||
Goodwill | 128,730 | Accumulated Depreciation-Equipment | 292,200 | |
Payroll Taxes Payable | 181,321 | Inventory | 243,530 | |
Bonds payable | 303,730 | Rent payable (short-term) | 48,730 | |
Discount on bonds payable | 15,200 | Income taxes payable | 102,092 | |
Cash | 363,730 | Rent payable (long-term) | 483,730 | |
Land | 483,730 | Common stock, $1 par value | 203,730 | |
Notes receivable | 449,430 | Preferred stock, $10 par value | 153,730 | |
Notes payable (to banks) | 268,730 | Prepaid expenses | 91,650 | |
Accounts payable | 493,730 | Equipment | 1,473,730 | |
Retained earnings | ? | Debt investments (trading) | 124,730 | |
Income taxes receivable | 101,360 | Accumulated Depreciation-Buildings | 270,400 | |
Notes payable (long-term) | 1,603,730 | Buildings | 1,643,730 | |
Prepare a classified balance sheet in good form. Assume that notes receivable and notes payable are | ||||
short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same. |
1
Midway, Inc., INC. |
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Balance Sheet |
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December 31, 2014 |
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Assets |
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Current assets |
|||
Cash |
$363,730 |
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Equity Investments (Trading) |
124,730 |
||
Notes Receivable |
449,430 |
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Income Taxes Receivable |
101,360 |
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Inventory |
243,530 |
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Prepaid Expenses |
91,650 |
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Total current assets |
$1,374,430 |
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Property, plant, and equipment |
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Land |
483,730 |
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Buildings |
$1,643,730 |
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Less: Accum Deprec - Buildings |
270,400 |
1,373,330 |
|
Equipment |
1,473,730 |
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Less: Accum Deprec - Equipment |
292,200 |
1,181,530 |
|
3,038,590 |
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Intangible assets |
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Goodwill |
128,730 |
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Total assets |
$4,541,750 |
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Liabilities and Shareholders’ Equity |
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Current liabilities |
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Accounts Payable |
$493,730 |
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Notes Payable to Banks |
268,730 |
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Payroll Taxes Payable |
181,321 |
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Income Tax Payable |
102,092 |
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Rent Payable - Short-term |
48,730 |
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Total current liabilities |
$1,094,603 |
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Long-term liabilities |
|||
Unsecured Notes Payable (Long-term) |
1,603,730 |
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Bonds Payable |
$303,730 |
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Less: Discount on Bonds Payable |
15,200 |
288,530 |
|
Rental Payable Long-term |
483,730 |
2,375,990 |
|
Total liabilities |
3,470,593 |
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Shareholders’ equity |
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Capital Stock |
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Preferred stock, $10 par; shares |
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153,730 |
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Common stock, $1 par |
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203,730 |
357,460 |
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Retained Earnings ($1,071,157 - $357,460) |
713,697 |
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Total shareholders’ equity ($4,541,750 – $3,470,593) |
1,071,157 |
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Total liabilities and shareholders’ equity |
$4,541,750 |
working notes for the above answer is as under
1
Computation of Retained earnings:
Total assets |
$4,541,750 |
Less: Liabilities |
3,470,593 |
Less: Contributed capital |
357,460 |
Retained earnings |
$713,697 |