Question

Balance Sheet Calculations

Dawson Company's balance sheet information at the end of 2016 and 2017 is as follows:

	2016	2017
Current assets	$ (a)	$25,000
Long-term liabilities	(b)	34,900
Total contributed capital	(c)	(g)
Long-term investments	19,200	(h)
Retained earnings	51,300	61,100
Total liabilities	(d)	(i)
Intangible assets	10,400	9,000
Current liabilities	14,500	12,000
Common stock, $5 par	(e)	20,000
Total assets	142,800	(j)
Additional paid-in capital	15,000	(k)
Property, plant, and equipment (net)	85,700	92,800
Accumulated other comprehensive income	7,000	6,000
Total shareholders' equity	(f)	(l)

Additional information: The company did not issue any common stock during 2017.

Required:

Prepare the correct balance sheet. All the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)

DAWSON COMPANY
Balance Sheet
December 31
	2016	2017
Assets
Current assets	$	$
Long-term investments
Property, plant, and equipment (net)
Intangible assets
Total assets	$	$
Liabilities
Current liabilities	$	$
Long-term liabilities
Total liabilities	$	$
Shareholders’ Equity
Common stock, $5 par	$	$
Additional paid-in capital
Total contributed capital	$	$
Retained earnings
Accumulated other comprehensive income
Total shareholders' equity	$	$
Total liabilities and shareholders' equity	$	$

Answer 1

DAWSON COMPANY
Balance Sheet
Dec-31
	2016	2017
Assets
Current assets	$27,500	$25,000
Long-term investments	$19,200	$22,200
Property, plant, and equipment (net)	$85,700	$92,800
Intangible assets	$10,400	$9,000
Total assets	$142,800	$149,000
Liabilities
Current liabilities	$14,500	$12,000
Long-term liabilities	$35,000	$34,900
Total liabilities	$49,500	$46,900
Shareholders’ Equity
Common stock, $5 par	$20,000	$20,000
Additional paid-in capital	$15,000	$15,000
Total contributed capital	$35,000	$35,000
Retained earnings	$51,300	$61,100
Accumulated other comprehensive income	$7,000	$6,000
Total shareholders' equity	$93,300	$102,100
Total liabilities and shareholders' equity	$142,800	$149,000

--Working calculations

DAWSON COMPANY
Balance Sheet
	2016	2017
Assets
Current assets	=142800-19200-85700-10400	25000
Long-term investments	19200	=149000-25000-92800-9000
Property, plant, and equipment (net)	85700	92800
Intangible assets	10400	9000
Total assets	142800	149000
Liabilities
Current liabilities	14500	12000
Long-term liabilities	=49500-14500	34900
Total liabilities	=142800-93300	=12000+34900
Shareholders’ Equity
Common stock, $5 par	20000	20000
Additional paid-in capital	15000	15000
Total contributed capital	=20000+15000	=20000+15000
Retained earnings	51300	61100
Accumulated other comprehensive income	7000	6000
Total shareholders' equity	=35000+51300+7000	=35000+61100+6000
Total liabilities and shareholders' equity	142800	=46900+102100