Question

Balance Sheet The following is a list (in random order) of KIP International Products Company's December 31, 2016 balance sheet accounts of the International Products Company: Additional Paid-In Capital on Preferred Stock $ 2,240 Accounts Payable $ 14,900 Accounts Receivable 13,600 Prepaid Insurance 920 Dividends Payable 1,840 Discount on Bonds Payable 2,900 Buildings 58,800 Common Stock, $10 par 12,000 Bonds Payable (due 2019) 29,800 Equipment 41,200 Retained Earnings 92,060 Allowance for Doubtful Accounts 750 Office Supplies 2,110 Preferred Stock, $50 par 14,000 Current Income Taxes Payable 3,620 Accumulated Depreciation: Buildings 8,100 Accumulated Depreciation: Equipment 6,300 Current Interest Payable 2,770 Patents (net) 4,400 Investment in Held-to-Maturity Bonds 15,000 Notes Payable (due January 1, 2019) 12,600 Cash 8,800 Inventory 40,800 Treasury Stock (at cost) 1,200 Additional Paid-In Capital on Common Stock 6,000 Accrued Wages 3,050 Sinking Fund for Bond Retirement 7,300 Land 13,000 Required: 1. Prepare a properly classified balance sheet according to U.S. GAAP for KIP as of December 31, 2016. Kip International Products Company Balance Sheet December 31, 2016

Answer 1

KIP INTERNATIONAL PRODUCTS COMPANY
Balance Sheet
December 31, 2016
Assets
Current Assets
Cash		8800
Accounts Receivable	13600
Less: Allowance for Doubtful Accounts	-750	12850
Inventory		40800
Prepaid items
Office Supplies	2110
Prepaid Insurance	920	3030
Total current assets			65480
Long-Term Investments
Investment in Held-to-Maturity Bonds		15000
Sinking Fund for Bond Retirement		7300
Total long-term investments			22300
Property, Plant, and Equipment
Land		13000
Buildings	58800
Less: Accumulated Depreciation-Buildings	-8100	50700
Equipment	41200
Less: Accumulated Depreciation-Equipment	-6300	34900
Total property, plant, and equipment			98600
Intangible Assets
Patents (net)			4400
Total Assets			190780
Liabilities
Current Liabilities
Accounts Payable		14900
Accrued Wages		3050
Interest Payable		2770
Income Taxes Payable		3620
Dividends Payable		1840
Total current liabilities			26180
Long-Term Liabilities
Bonds Payable		29800
Discount on Bonds Payable		-2900
Subtotal		26900
Notes Payable (due in 2019)		12600
Total long-term liabilities			39500
Total liabilities			65680
Shareholders' Equity
Contributed Capital
Preferred Stock		14000
Common Stock		12000
Additional paid-in capital on Preferred Stock		2240
Additional paid-in capital on Common Stock		6000
Total contributed capital		34240
Retained earnings		92060
Total contributed capital and retained earnings		126300
Treasury Stock		-1200
Total Shareholders' Equity			125100
Total Liabilities and Shareholders' Equity			190780