Question

Corrections to Balance Sheet

Minett Boatbuilders Company prepared the following balance sheet:

Minett Boatbuilders Company Balance Sheet for Year Ended December 31, 2019
Working capital	$ 22,800		Noncurrent liabilities	$ 62,000
Other assets	152,000		Shareholders' equity	112,800
Total	$174,800		Total	$174,800

Your analysis of these accounts reveals the following information:

1.	Working capital consists of:
	Land	$ 12,000
	Accounts due from customers	18,000
	Accounts due to suppliers	(22,700)
	Inventories, including office supplies of $3,500	35,500
	Income taxes owed	(16,400)
	Wages owed	(3,600)
	Note owed to bank (due December 31, 2021)	(17,000)
	Securities held as a short-term investment	17,000
		$ 22,800

2.	Other assets include:
	Cash	$ 12,300
	Prepaid insurance	2,400
	Buildings and equipment	100,000
	Discount on bonds payable	3,000
	Investment in available-for-sale securities	29,000
	Treasury stock (at cost)	5,300
		$152,000

3.	Noncurrent liabilities consist of:
	Bonds payable (due 2026)	$ 33,000
	Allowance for doubtful accounts	1,400
	Additional paid-in capital on preferred stock	2,600
	Common stock, $5 par	25,000
		$ 62,000

4.	Shareholders' equity includes:
	Accumulated depreciation: Buildings and equipment	$ 40,000
	Preferred stock, $100 par	12,000
	Additional paid-in capital on common stock	15,600
	Retained earnings	40,000
	Accrued pension cost	6,500
	Accumulated other comprehensive loss	(1,300)
		$112,800

Required:

Based on your analysis, prepare a properly classified December 31, 2019, balance sheet for Minett Boatbuilders.

Answer 1