Question

Balance Sheet Preparation

The December 31, 2016, balance sheet accounts of Hitt Company are shown here in alphabetical order:

Accounts Payable	$20,800		Equipment	$72,400
Accounts Receivable	21,000		Inventory	37,200
Accumulated Depreciation: Buildings	53,000		Land	30,000
Accumulated Depreciation: Equipment	35,100		Marketable Securities (short-term)	6,100
Additional Paid-in Capital on Common Stock	24,000		Patents (net)	9,500
Additional Paid-in Capital on Preferred Stock	11,500		Preferred Stock, $100 par	21,000
Allowance for Doubtful Accounts	800		Retained Earnings	53,740
Bonds Payable (due 2024)	77,000		Revenues	107,000
Buildings	144,000		Salaries Expense	39,000
Cash	9,540		Salaries Payable	2,000
Common Stock, $10 par	30,000		Trademarks	3,700
Current Taxes Payable	10,400		Unrealized Increase in Value of Marketable Securities	1,000
Discount on Bonds Payable	6,900

Required:

1. Prepare Hitt's December 31, 2016, balance sheet.

Hitt Company Balance Sheet December 31, 2016
Assets
Current Assets:
Cash		$ fill in the blank 047c45f9afcffd6_2
Marketable securities (short-term)		fill in the blank 047c45f9afcffd6_4
Accounts receivable	$ fill in the blank 047c45f9afcffd6_6
Less: Allowance for doubtful accounts	fill in the blank 047c45f9afcffd6_8	fill in the blank 047c45f9afcffd6_9
Inventory		fill in the blank 047c45f9afcffd6_11
Total current assets			$ fill in the blank 047c45f9afcffd6_13
Property, Plant, and Equipment:
Land		$ fill in the blank 047c45f9afcffd6_15
	$ fill in the blank 047c45f9afcffd6_17
	fill in the blank 047c45f9afcffd6_19	fill in the blank 047c45f9afcffd6_20
	$ fill in the blank 047c45f9afcffd6_22
	fill in the blank 047c45f9afcffd6_24	fill in the blank 047c45f9afcffd6_25
			fill in the blank 047c45f9afcffd6_27
Intangible Assets:
		$ fill in the blank 047c45f9afcffd6_29
		fill in the blank 047c45f9afcffd6_31
			fill in the blank 047c45f9afcffd6_33
			fill in the blank 047c45f9afcffd6_35
Liabilities
Current Liabilities:
		$ fill in the blank 047c45f9afcffd6_37
		fill in the blank 047c45f9afcffd6_39
		fill in the blank 047c45f9afcffd6_41
			$ fill in the blank 047c45f9afcffd6_43
Long-Term Liabilities:
		$ fill in the blank 047c45f9afcffd6_45
		fill in the blank 047c45f9afcffd6_47
			fill in the blank 047c45f9afcffd6_49
			$ fill in the blank 047c45f9afcffd6_51
Shareholders' Equity
Contributed Capital:
		$ fill in the blank 047c45f9afcffd6_53
		fill in the blank 047c45f9afcffd6_55
		fill in the blank 047c45f9afcffd6_57
		fill in the blank 047c45f9afcffd6_59
			$ fill in the blank 047c45f9afcffd6_61
			fill in the blank 047c45f9afcffd6_63
Accumulated Other Comprehensive Income:
			fill in the blank 047c45f9afcffd6_65
			$ fill in the blank 047c45f9afcffd6_67
			$ fill in the blank 047c45f9afcffd6_69

2. Compute the working capital.
$  fill in the blank e5cac4fd6070071_1
Compute the current ratio. Round to two decimal places.
fill in the blank e5cac4fd6070071_2: 1

Answer 1

1.

Hit Company
Balance Sheet
At December 31,2016
Assets
Current assets:
Cash		$9,540
Marketable Securities (short-term)		$6,100
Accounts Receivable	$21,000
Allowance for Doubtful Accounts	($800)	$20,200
Inventory		$37,200
Total current assets			$73,040
Property, plant and equipment:
Land		$30,000
Buildings	$144,000
Accumulated Depreciation: Buildings	($53,000)	$91,000
Equipment	$72,400
Accumulated Depreciation: Equipment	($35,100)	$37,300
Total property, plant and equipment			$158,300
Intangible assets:
Patents (net)		$9,500
Trademarks		$3,700
Total intangible assets			$13,200
Total Assets			$244,540
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable		$20,800
Current Taxes Payable		$10,400
Salaries Payable		$2,000
Total current liabilities			$33,200
Long-term liabilities:
Bonds Payable (due 2024)		$77,000
Discount on Bonds Payable		($6,900)
Total Long-term liabilities			$70,100
Stockholders' Equity:
Contributed capital:
Common Stock, $10 par		$30,000
Preferred Stock, $100 par		$21,000
Additional Paid-in Capital on Common Stock		$24,000
Additional Paid-in Capital on Preferred Stock		$11,500
Total conctributd capital			$86,500
Retained Earnings [Diff.]			$86,940
Accumulated other comprehensive income:
Unrealized Increase in Value of Marketable Securities			$1,000
Total stockholders' equity			$174,440
Total liabilities and stockholders' Equity			$244,540

2.

Current assets	$73,040
Current liabilities	($33,200)
Working Capital	$39,840

3.

Current assets	$73,040
÷ Current liabilities	$33,200
= Current ratio	2.2