Question

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

		Debit		Credit
Cash		$289,100
Sales Revenue				$11,907,000
Debt Investments (trading) (at cost, $218,000)		225,400
Cost of Goods Sold		7,056,000
Debt Investments (long-term)		439,040
Equity Investments (long-term)		407,680
Notes Payable (short-term)				132,300
Accounts Payable				668,360
Selling Expenses		2,940,000
Investment Revenue				93,100
Land		382,200
Buildings		1,528,800
Dividends Payable				199,920
Accrued Liabilities				141,120
Accounts Receivable		638,960
Accumulated Depreciation–Buildings				223,440
Allowance for Doubtful Accounts				37,240
Administrative Expenses		1,323,000
Interest Expense		310,660
Inventory		877,100
Gain				117,600
Notes Payable (long-term)				1,323,000
Equipment		882,000
Bonds Payable				1,470,000
Accumulated Depreciation–Equipment				88,200
Franchises		235,200
Common Stock ($5 par)				1,470,000
Treasury Stock		281,260
Patents		287,140
Retained Earnings				114,660
Paid-in Capital in Excess of Par				117,600
Totals		$18,103,540		$18,103,540

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

Working Notes:
	Sales Revenue		$     11,907,000
	Gain		$           117,600
	Investment Revenue		$             93,100
	Total Revenue		$     12,117,700
	Less: Expenses
	Cost of Goods Sold		$       7,056,000
	Selling expenses		$       2,940,000
	Administrative Expenses		$       1,323,000
	Interest Expenses		$           310,660
	Total Expenses		$     11,629,660
	Net Income		$           488,040
Solution: 1
		AMOUNT	AMOUNT
	CURRENT ASSETS:
	Cash		$           289,100
	Account Receivable	$            638,960
	Less: Allowance for Doubtfull Accouts	$               37,240
	Net Account Receivable		$           601,720
	Inventory		$           877,100
	debt Investment		$           225,400
	Total Current Assets		$       1,993,320
Solution: 2
	PROPERTY PLANT & EQUIPMENT
	Franchises		$           235,200
	Patents		$           287,140
	Equipment	$            882,000
	Less: Accumulated Depreciation - Equipment	$               88,200
	Net Equipment		$           793,800
	Land		$           382,200
	Building	$         1,528,800
	Less: Accumulated Depreciation - Building	$            223,440	$       1,305,360
	Total Property Plant & Equipment		$       3,003,700
Solution: 3
	TOTAL OF ASSETS
	Current Assets		$       1,993,320
	Property Plan & Equipment		$       3,003,700
	Add: Equity Investment		$           407,680
	Add: Debt investment (Long Term)		$           439,040
	Total of Assets		$       5,843,740
Solution: 4	AMOUNT
	TOTAL LIABILITIES
	Account Payable	$            668,360
	Dividends Payable	$            199,920
	Accrued Liabilities	$            141,120
	Note Payable (Short Term)	$            132,300
	Notes Payable (Long Term)	$         1,323,000
	Bonds Payable	$         1,470,000
	Total Liabilities	$         3,934,700
Solution: 5
	SHAREHOLDER'S EQUITY
	Common Stock		$       1,470,000
	Paid in Capital in excess of par		$           117,600
	Retained Earnings
	Beginning Balance	$            114,660
	Add: Net Income of the year	$            488,040
	Total Retained Earnings		$           602,700
	Treasury Stock		$         (281,260)
	Total Shareholder's Equity		$       1,909,040