In: Accounting
Headland Company has decided to expand its operations. The
bookkeeper recently completed the following balance sheet in order
to obtain additional funds for expansion.
HEADLAND COMPANY |
||
Current assets | ||
Cash | $236,000 | |
Accounts receivable (net) | 346,000 | |
Inventory (lower-of-average-cost-or-market) | 407,000 | |
Equity investments (marketable)-at cost (fair value $126,000) | 146,000 | |
Property, plant, and equipment | ||
Buildings (net) | 576,000 | |
Equipment (net) | 166,000 | |
Land held for future use | 181,000 | |
Intangible assets | ||
Goodwill | 86,000 | |
Cash surrender value of life insurance | 96,000 | |
Prepaid expenses | 18,000 | |
Current liabilities | ||
Accounts payable | 141,000 | |
Notes payable (due next year) | 131,000 | |
Pension obligation | 88,000 | |
Rent payable | 55,000 | |
Premium on bonds payable | 59,000 | |
Long-term liabilities | ||
Bonds payable | 506,000 | |
Stockholders’ equity | ||
Common stock, $1.00 par, authorized 400,000 shares, issued 296,000 | 296,000 | |
Additional paid-in capital | 166,000 | |
Retained earnings | ? |
Prepare a revised balance sheet given the available information.
Assume that the accumulated depreciation balance for the buildings
is $166,000 and for the equipment, $111,000. The allowance for
doubtful accounts has a balance of $23,000. 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.)