Question

Problem 2 Scott Butler Company prepared the following Balance sheet: Working Capital $ 22,800 Noncurrent Liabilities $ 62,000 Other Assets 152,000 Shareholder's Equity 112,800 Total $ 174,800 Total $ 174,800 An analysis prepared by your of these accounts reveals the following information: 1. Working Capital consists of: Land $ 12,000 Accounts due from customers 18,000 Accounts due to supplies (22,700) Inventories, including office supplies of $3,500 35,500 Income taxes owed (16,400) Wages owed (3,600) Note owed to bank (due December 31, 2024) (17,000) Securities held as a short-term investment 17,000 Total $ 22,800 2. Other Assets include: Cash $ 12,300 Prepaid Insurance 2,400 Buildings and equipment 100,000 Discount on Bonds Payable 3,000 Investment in available for sale securities 29,000 Treasury Stock (at Cost) 5,300 Total $ 152,000 3. Noncurrent liabilities consist of: Bonds payable (due 2028) $ 33,000 Allowance for doubtful accounts 1,400 Additional paid-in capital on preferred stock 2,600 Common stock, $5 par 25,000 Total $ 62,000 4. Shareholder's equity includes: Accumulated depreciation: Buildings and equipment $ 40,000 Preferred Stock, $100 par 12,000 Additional paid-in capital on common stock 15,600 Retained earnings 40,000 Accrued pension cost 6,500 Unrealized decrease in value of available for sale securities (1,300) Total $ 112,800 Scott Butler Company Balance Sheet for Year Ended December 31, 2020 Instructions: Based on your analysis prepare a properly classified balance with parenthetic notes as applicable.

Answer 1

Balance sheet as on 31-Dec-2020
Assets
Non Current Assets	$
Property plant and equipment		112000
Investment properties		29000
Intangible Assets		-
Investment in an associate		-
Other non current financial assets		-
Deferred tax asset
total	141000
Current Assets
Inventories		8800
Trade and other receivables		18000
Prepayments		2400
Other currrent financial assets		27200
Cash and short term deposits		29300
total	85700
Assets held as classified for sale
Total Assets	226700
Equity and Liabilities
Equity
Issued capital		52600
Share premium		-
Treasury shares		-
other capital reserves		-
retained earnings		40000
other components of equity		-
reserves of disposal group classified as sale
total	92600
Non Controlling interests
Total equity		92600
Non Current Liabilities
Interest bearing loans and borrowings		33000
Other non current financial liabilities
Provisions		40000
Government grants
Deferred revenue
Employee benefit liability
Other liabilities
total	73000
Current Liabilities
Trade and other liabilities		22700
Interest bearing loans and borrowings		17000
Government grants
Deferred revenue
Other non current financial liabilities		5000
Income tax payable		16400
Provisions
total	61100
Total liabilities		134100
Total Equity and liabilities		226700