Question

Problem 5-3 The adjusted trial balance of Concord Company and other related information for the year 2017 are presented as follows. CONCORD COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Debit Credit Cash $ 45,130 Accounts Receivable 167,630 Allowance for Doubtful Accounts $ 9,200 Prepaid Insurance 6,400 Inventory 212,630 Equity Investments (long-term) 343,130 Land 89,130 Construction in Progress (building) 128,130 Patents 36,000 Equipment 404,130 Accumulated Depreciation-Equipment 240,500 Discount on Bonds Payable 20,000 Accounts Payable 152,130 Accrued Liabilities 53,330 Notes Payable 98,130 Bonds Payable 204,130 Common Stock 504,130 Paid-in Capital in Excess of Par-Common Stock 45,000 Retained Earnings 145,760 $1,452,310 $1,452,310 Additional information: 1. The LIFO method of inventory value is used. 2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same. 3. The amount of the Construction in Progress account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $89,130, as shown in the trial balance. 4. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis. 5. Of the discount on bonds payable, $2,000 will be amortized in 2018. 6. The notes payable represent bank loans that are secured by long-term investments carried at $124,130. These bank loans are due in 2018. 7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2028. 8. 600,000 shares of common stock of a par value of $1 were authorized, of which 504,130 shares were issued and outstanding. Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed. (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.) CONCORD COMPANY Balance Sheet Assets $ $ : $ Cost of Uncompleted Plant Facilities : $ Liabilities and Stockholders' Equity $ $ : $ $

Answer 1

Concord company , Balance sheet, December 31st 2017
Assets
Current Assets
Cash			45130.00
Accounts Receivable		167,630
Less: Allowance for doubtful accounts		-9,200	158430.00
Inventory-LIFO method			212630.00
Prepaid Insurance			6400.00
	Total Current assets		422590.00
Long-term Investments
Equity investments			343130.00
Property, plant, and equipment
Land-at cost			89130.00
Construction-in-Progress (Building)			128130.00
Equipment		404130.00
Less: Accumulated depreciation		-240500.00	163630.00
Total Property, plant, and equipment			380890.00
Intangible Assets
Patent			36000.00
	Total Assets		1182610.00
Liabilities and Stockholders’ Equity
Current Liabilities
Notes Payable			98130.00
Accounts Payable			152130.00
Accrued Liabilities			53330.00
	Total current liabilities		303590.00
Long-term Debt
Bonds Payable	204130.00
Less : discount on bonds payable	-20000		184130.00
Total Liabilities			487720.00
Stockholders’ Equity
authorised 600000 shares of $1 par value
issued and outstanding 504130	504130
Paid-in Capital in Excess of Par-Common Stock	$45,000
Retained Earnings	145760
	Total Stockholders’ Equity		694890.00
Total Liabilities and Stockholders’ Equity			1182610.00