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Pina Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet...

Pina Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion.

PINA COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2020

Current assets
  Cash $233,500
  Accounts receivable (net) 343,500
  Inventory (lower-of-average-cost-or-market) 404,500
  Equity investments (marketable)-at cost (fair value $123,500) 143,500
Property, plant, and equipment
  Buildings (net) 573,500
  Equipment (net) 163,500
  Land held for future use 178,500
Intangible assets
  Goodwill 83,500
  Cash surrender value of life insurance 93,500
  Prepaid expenses 15,500
Current liabilities
  Accounts payable 138,500
  Notes payable (due next year) 128,500
  Pension obligation 85,500
  Rent payable 52,500
  Premium on bonds payable 56,500
Long-term liabilities
  Bonds payable 503,500
Stockholders’ equity
  Common stock, $1.00 par, authorized 400,000 shares, issued 293,500 293,500
  Additional paid-in capital 163,500
  Retained earnings ?


Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $163,500 and for the equipment, $108,500. The allowance for doubtful accounts has a balance of $20,500. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

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Ans: Pina company Balance Sheet

Particulars Amount($) Particulars Amount($)
Current Assets Current liabilities
Cash 233,500 Accounts payable 138,500
Cash surrender value of life insurance 93,500 Notes payable 128,500
Equity investments (marketable)-at cost 123,500 Pension obligation 85,500
Accounts receivable (net) 343,500 Rent payable 52,500
Inventory 404,500
Prepaid expenses 15,500
Total Current Assets 1,214,000 Total Current liabilities 405,000
Property, Plant And Equipment Long term Liabilities
Land 178,500 Bonds Payable 503,500
Buildings(net) 543,500 Premium on Bonds Payable (56,500)
Equipment (net) 163,500
Total Property, Plant And Equipment 885,500 Total Liabilities 852,000
Intangible Assets Stockholder Equity
Goodwill 83,500 Common stock, 293,500
Additional paid-in capital 163,500
Retained earnings 469,000
Total Stockholder Equity 926,000
Total Assets 2,183,000 Total Liabilities and Equity 2,183,000

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