Question

Presented below is the trial balance of Bonita Corporation at December 31, 2020.

		Debit		Credit
Cash		$   198,550
Sales				$ 8,101,220
Debt Investments (trading) (at cost, $145,000)		154,220
Cost of Goods Sold		4,800,000
Debt Investments (long-term)		300,550
Equity Investments (long-term)		278,550
Notes Payable (short-term)				91,220
Accounts Payable				456,220
Selling Expenses		2,001,220
Investment Revenue				64,400
Land		261,220
Buildings		1,041,550
Dividends Payable				137,550
Accrued Liabilities				97,220
Accounts Receivable		436,220
Accumulated Depreciation-Buildings				152,000
Allowance for Doubtful Accounts				26,220
Administrative Expenses		901,400
Interest Expense		212,400
Inventory		598,550
Gain				81,400
Notes Payable (long-term)				901,550
Equipment		601,220
Bonds Payable				1,001,550
Accumulated Depreciation-Equipment				60,000
Franchises		160,000
Common Stock ($5 par)				1,001,220
Treasury Stock		192,220
Patents		195,000
Retained Earnings				79,550
Paid-in Capital in Excess of Par				81,550
Totals		$12,332,870		$12,332,870

Prepare a balance sheet at December 31, 2020, for Bonita Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

Bonita Corporation
Balance Sheet
December 31, 2020
Assets:
Current Assets:
Cash		198,550
Accounts Receivable	436,220
Less: Allowance for doubtful accounts	(26,220)	410,000
Inventory		598,550
Debt investment(trading)		154,220
Total Current Assets			1,361,320`
Long term investments:
Debt Investments		300,550
Equity Investments		278,550
Total long term investments			579,100
Property, Plant and Equipment:
Land		261,220
Buildings	1,041,550
Less: Accumulated depreciation	(152,000)	889,550
Equipment	601,220
Less: Accumulated depreciation	(60,000)	541,220
Total Property, Plant and Equipment			1,691,990
Intangible Assets:
Franchises		160,000
Patents		195,000
Total Intangible Assets			355,000
Total Assets			3,987,410

Liabilities and Shareholder's Equity
Current Liabilities:
Notes payable		91,220
Accounts payable		456,220
Dividens payable		137,550
Accrued liabilities		97,220
Total Current Liabilities			782,210
Long term Liabilities:
Bonds payable		1,001,550
Notes payable		901,550
Total long term liabilities			1,903,100
Total liabilities			2,685,310
Shareholders equity:
Capital stock
Common stock		1,001,220
Additional paid in capital:
Paid in capital in excess of par		81,550
Total paid in capital			1,082,770
Retained earnings(Note)		411,550
Less:Treasury stock		(192,220)	219,330
Total Liabilities and Shareholder's Equity			3,987,410

Note:

Income Statement
Sales	8,101,220
Add: Investment revenue	64,400
Extraordinary gain	81,400
Total revenue	8,247,020
Less: Expenses
COGS	(4,800,000)
Selling expenses	(2,001,220)
Administrative expense	(901,400)
Interest expense	(212,400)
Net Income	332,000
Retained earnings:
Opening balance	79,550
Add: Net income	332,000
Closing balance	411,550