Question

Exercise 23-17 (Part Level Submission)

Sage Inc., had the following condensed balance sheet at the end of operations for 2019.

SAGE INC. BALANCE SHEET DECEMBER 31, 2019
Cash		$8,400		Current liabilities		$15,000
Current assets other than cash		29,200		Long-term notes payable		25,500
Equity invesments		19,800		Bonds payable		25,000
Plant assets (net)		66,900		Common stock		75,000
Land		40,100		Retained earnings		23,900
		$164,400				$164,400

During 2020, the following occurred.

1.		A tract of land was purchased for $8,900.
2.		Bonds payable in the amount of $15,000 were redeemed at par.
3.		An additional $10,000 in common stock was issued at par.
4.		Dividends totaling $9,400 were paid to stockholders.
5.		Net income was $29,900 after allowing depreciation of $13,600.
6.		Land was purchased through the issuance of $22,600 in bonds.
7.		Sage Inc. sold part of its investment portfolio for $13,000. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020.
8.		Both current assets (other than cash) and current liabilities remained at the same amount.

b. Prepare the condensed balance sheet for jobim inc. as it would appear at december 31 2020

Answer 1

Sage Inc.,
Balance Sheet
DECEMBER 31, 2020
Assets
Current Assets
Cash	$64,200
Current assets other than cash	$29,200
Equity investments	$8,800
Total current assets		$102,200
Property, plant, and equipment
Land	$49,000
Plant Assets	$53,300
Total Property, plant, and equipment		$102,300
Total Assets		$204,500
Liabilities and Stockholders' Equity
Current Liabilities		$15,000
Long-Term Liabilities
Long-Term Notes Payable	$25,500
Bonds Payable	$32,600
Total Long-Term Liabilities		$58,100
Stockholders' Equity
Common Stock	$85,000
Retained Earnings	$46,400
Total Stockholders' Equity		$131,400
Total Liabilities and Stockholders' Equity		$204,500