Question

Presented below is the balance sheet for HHD, Inc., at December 31, 2018.

Current assets	$	656,000
Investments		542,000
Property, plant, and equipment		2,392,000
Intangible assets		228,000
Total assets	$	3,818,000
Current liabilities	$	456,000
Long-term liabilities		722,000
Shareholders' equity		2,640,000
Total liabilities and shareholders' equity	$	3,818,000

The captions shown in the summarized statement above include the following:

Current assets: cash, $164,000; accounts receivable, $214,000; inventories, $239,000; and prepaid insurance, $39,000.

Investments: investments in common stock, short term, $104,000, and long term, $174,000; and restricted cash, long term, $264,000.

Property, plant, and equipment: buildings, $1,640,000 less accumulated depreciation, $614,000; equipment, $640,000 less accumulated depreciation, $214,000; and land, $940,000.

Intangible assets: patent, $124,000; and copyright, $104,000.

Current liabilities: accounts payable, $114,000; notes payable, short term, $164,000, and long term, $104,000; and taxes payable, $74,000.

Long-term liabilities: bonds payable due 2023.

Shareholders’ equity: common stock, $1,700,000; retained earnings, $940,000. Four hundred thousand shares of no par common stock are authorized, of which 340,000 shares were issued and are outstanding.

Required:
Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

HHD Inc.
Balance Sheet
At Dec 31, 2018
Assets
Current Assets
Cash		164,000.00
Investments in Common Stock (Short Term)		104,000.00
Accounts Receivable		214,000.00
Inventories		239,000.00
Prepaid Insurance		39,000.00
Total Current Assets			760,000.00
Invetments:
Investment in Common Stock (Long Term)		174,000.00
Restricted Cash		264,000.00
Total Investments			438,000.00
Property, Plant & Equipment
Land		940,000.00
Building	1,640,000.00
Less: Accumulated Depreciation	(614,000.00)	1,026,000.00
Equipment	640,000.00
Less: Accumulated Depreciation	(214,000.00)	426,000.00
Net Property, Plant & Equipment			2,392,000.00
Intagible Assets
Patents		124,000.00
Copyright		104,000.00
Total Intagible Assets			228,000.00
Total Assets			3,818,000.00
Liabilities & Shareholders' Equity
Liabilities
Current Liabilities:
Accounts Payable		114,000.00
Note Payable (Short Term)		164,000.00
Taxes Payable		74,000.00
Total Current Liabilties			352,000.00
Long Term Liabilities
Notes Payable (Long Term)		104,000.00
Bonds Payable		722,000.00
Total Long Term Liabilities			826,000.00
Total Liabilities			1,178,000.00
Shareholders' Equity
Common Stock, no par Value, 400,000 shares authorized; 340,000 Shares issued and outstanding		1,700,000.00
Retained Earnings		940,000.00
Total Shareholders' Equity			2,640,000.00
Total Liabilities & Shareholders' Equity			3,818,000.00