Question

Presented below is the trial balance of Sheridan Corporation at December 31, 2020. Debit Credit Cash $271,400 Sales Revenue $11,178,000 Debt Investments (trading) (at cost, $218,000) 211,600 Cost of Goods Sold 6,624,000 Debt Investments (long-term) 412,160 Equity Investments (long-term) 382,720 Notes Payable (short-term) 124,200 Accounts Payable 627,440 Selling Expenses 2,760,000 Investment Revenue 87,400 Land 358,800 Buildings 1,435,200 Dividends Payable 187,680 Accrued Liabilities 132,480 Accounts Receivable 599,840 Accumulated Depreciation–Buildings 209,760 Allowance for Doubtful Accounts 34,960 Administrative Expenses 1,242,000 Interest Expense 291,640 Inventory 823,400 Gain 110,400 Notes Payable (long-term) 1,242,000 Equipment 828,000 Bonds Payable 1,380,000 Accumulated Depreciation–Equipment 82,800 Franchises 220,800 Common Stock ($5 par) 1,380,000 Treasury Stock 264,040 Patents 269,560 Retained Earnings 107,640 Paid-in Capital in Excess of Par 110,400 Totals $16,995,160 $16,995,160

Compute each of the following:

1. Total current assets $

2. Total property, plant, and equipment $

3. Total assets $

4. Total liabilities $

5. Total stockholders’ equity $

Answer 1

Answer:

1) Total Current Assets

Cash		$271400
Debt Investment(Trading)		$211600
Accounts Receivable	$599840
-Allowances for doubtful account	($34960)	$564880
Inventory		$823400
Total Current Assets		$1871280

2) Property plant and equipment

Land		$358800
Building	$1435200
-Accumulated depreciation	($209760)	$1225440
Equipment	$828000
-Accumulated depreciation	($82800)	$745200
Total property plant and equipment		$2329440

3) Total Assets

Total Current Assets		$1871280
Property plant and equipment		$2329440
Long-term Investments
Debt Investment(Long-term)	$412160
Equity Investment(Long-term)	$382720	$794880
Intangible Assets
Franchise	$220800
Patents	$269560	$490360
Total Assets		$5485960

4) Total Liabilities

Current Liabilities
Accounts Payable	$627440
Short-term Notes Payables	$124200
Dividend Payable	$187680
Accrued Liabilities	$132480
Total Current Liabilities		$1071800
Long-term Liabilities
Long-term Notes Payables	$1242000
Bonds Payables	$1380000
Total Long-term Liabilities		$2622000
Total Liabilities		$3693800

5) Total Stock Holders Equity

Paid in Capital
Common Stock($5 par)	$1380000
Additional paid in Capital	$110400	$1490400
Retained Earnings		$565800
Total paid in Capital and Retained Earnings		$2056200
- Treasury Stock		($264040)
Total Stock Holders Equity		$1792160

Note

1) Computation of Net Income

Sales Revenue	$11178000
Investment Revenue	$87400
Gain	$110400
Cost of Goods Sold	($6624000)
Selling Expense	($2760000)
Administrative Expense	($1242000)
Interest Payable	($291640)
Net Income	$458160

2) Computation of Retained Earnings

Beginning Retained Earnings+Net Income = Ending Retained Earnings

That is...

$107640 + $ 458160 = $565800