Question

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

		Debit		Credit
Cash		$354,000
Sales Revenue				$14,580,000
Debt Investments (trading) (at cost, $218,000)		276,000
Cost of Goods Sold		8,640,000
Debt Investments (long-term)		537,600
Equity Investments (long-term)		499,200
Notes Payable (short-term)				162,000
Accounts Payable				818,400
Selling Expenses		3,600,000
Investment Revenue				114,000
Land		468,000
Buildings		1,872,000
Dividends Payable				244,800
Accrued Liabilities				172,800
Accounts Receivable		782,400
Accumulated Depreciation–Buildings				273,600
Allowance for Doubtful Accounts				45,600
Administrative Expenses		1,620,000
Interest Expense		380,400
Inventory		1,074,000
Gain				144,000
Notes Payable (long-term)				1,620,000
Equipment		1,080,000
Bonds Payable				1,800,000
Accumulated Depreciation–Equipment				108,000
Franchises		288,000
Common Stock ($5 par)				1,800,000
Treasury Stock		344,400
Patents		351,600
Retained Earnings				140,400
Paid-in Capital in Excess of Par				144,000
Totals		$22,167,600		$22,167,600

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		$     14,580,000
	Gain		$           144,000
	Investment Revenue		$           114,000
	Total Revenue		$     14,838,000
	Less: Expenses
	Cost of Goods Sold	$         8,640,000
	Selling expenses	$         3,600,000
	Administrative Expenses	$         1,620,000
	Interest Expenses	$            380,400
	Total Expenses		$     14,240,400
	Net Income		$           597,600
Solution: 1
		AMOUNT	AMOUNT
	CURRENT ASSETS:
	Cash		$           354,000
	Account Receivable	$            782,400
	Less: Allowance for Doubtfull Accouts	$               45,600
	Net Account Receivable		$           736,800
	Inventory		$       1,074,000
	debt Investment		$           276,000
	Total Current Assets		$       2,440,800
Solution: 2
	PROPERTY PLANT & EQUIPMENT
	Franchises		$           288,000
	Patents		$           351,600
	Equipment	$         1,080,000
	Less: Accumulated Depreciation - Equipment	$            108,000
	Net Equipment		$           972,000
	Land		$           468,000
	Building	$         1,872,000
	Less: Accumulated Depreciation - Building	$            273,600	$       1,598,400
	Total Property Plant & Equipment		$       3,678,000
Solution: 3
	TOTAL OF ASSETS
	Current Assets		$       2,440,800
	Property Plan & Equipment		$       3,678,000
	Add: Equity Investment		$           499,200
	Add: Debt investment (Long Term)		$           537,600
	Total of Assets		$       7,155,600
Solution: 4	AMOUNT
	TOTAL LIABILITIES
	Account Payable	$            818,400
	Dividends Payable	$            244,800
	Accrued Liabilities	$            172,800
	Note Payable (Short Term)	$            162,000
	Notes Payable (Long Term)	$         1,620,000
	Bonds Payable	$         1,800,000
	Total Liabilities	$         4,818,000
Solution: 5
	SHAREHOLDER'S EQUITY
	Common Stock		$       1,800,000
	Paid in Capital in excess of par		$           144,000
	Retained Earnings
	Beginning Balance	$            140,400
	Add: Net Income of the year	$            597,600
	Total Retained Earnings		$           738,000
	Treasury Stock		$         -344,400
	Total Shareholder's Equity		$       2,337,600