Question

Grouper Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

GROUPER COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2017

Current assets  Cash$231,000  Accounts receivable (net)341,000  Inventory (lower-of-average-cost-or-market)402,000  Equity investments (marketable)-at cost (fair value $121,000)141,000Property, plant, and equipment  Buildings (net)571,000  Equipment (net)161,000  Land held for future use176,000Intangible assets  Goodwill81,000  Cash surrender value of life insurance91,000  Prepaid expenses13,000Current liabilities  Accounts payable136,000  Notes payable (due next year)126,000  Pension obligation83,000  Rent payable50,000  Premium on bonds payable54,000Long-term liabilities  Bonds payable501,000Stockholders’ equity  Common stock, $1.00 par, authorized 400,000 shares, issued 291,000291,000  Additional paid-in capital161,000  Retained earnings?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $161,000 and for the equipment, $106,000. The allowance for doubtful accounts has a balance of $18,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1