Question

The following information was obtained from the accounts of Alleg, Inc., as of De- cember 31, 2012. It is presented in scrambled order.

Common stock, authorized 21,000 shares at $1

par value, issued 10,000 shares    $10,000

Additional paid-in capital $38,000

Cash $13,000

Marketable securities $17,000

Accounts receivable $26,000

Accounts payable $15,000

Current maturities of long-term debt $11,000

Mortgages payable $80,000

Bonds payable $70,000

Inventory $30,000

Land and buildings $571,000

Machinery and equipment $125,000

Goodwill $8,000

Patents $10,000

Other assets $50,000

Deferred income taxes (long-term liability) $18,000

Retained earnings $33,000

Accumulated depreciation $61,000

Required Prepare a classified balance sheet in report form. For assets, use the classifications of current assets, plant and equipment, intangibles, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.

Answer 1

• All working forms part of the answer
• Amounts are in $
• Classified balance sheet is prepared from the available data. Since the balances in Dr Cr accounts are not matching, balance sheet wont match.
• Classified Balance Sheet

ASSETS	Amounts (in $)
Current Assets:
Cash	13000
Marketable securities	17000
Accounts receivable	26000
Inventory	30000	86000
Plant & Equipments:
Land and buildings	571000
Machinery and equipment	125000
(-) Accumulated Depreciation	-61000	635000
Intangibles:
Goodwill	8000
Patents	10000	18000
Other Assets:		50000
Total ASSETS		$789000
LIABILITIES & EQUITY
Current Liabilities:
Accounts payable	15000
Current maturities of long-term debt	11000	26000
Long - Term liabilities:
Mortgages payable	80000
Bonds payable	70000
Deferred income taxes (long-term liability)	18000	168000
Total LIABILITIES		$194000
Shareholder's Equity
Common Stock	10000
Additional paid-in capital	38000
Retained earnings	33000	$81000