Question

Tamarisk Corporation’s balance sheet at the end of 2016 included the following items.

Current assets (Cash $82,000)		$236,770			Current liabilities		$151,770
Land		32,190			Bonds payable		101,770
Buildings		121,770			Common stock		182,190
Equipment		92,190			Retained earnings		46,190
Accum. depr.-buildings		(31,770	)		Total		$481,920
Accum. depr.-equipment		(11,000	)
Patents		41,770
Total		$481,920

The following information is available for 2017.

1.		Net income was $60,100.
2.		Equipment (cost $21,770 and accumulated depreciation $9,770) was sold for $11,770.
3.		Depreciation expense was $5,770 on the building and $10,770 on equipment.
4.		Patent amortization was $2,500.
5.		Current assets other than cash increased by $29,000. Current liabilities increased by $14,770.
6.		An addition to the building was completed at a cost of $28,770.
7.		A long-term investment (Equity) in stock was purchased for $16,000.
8.		Bonds payable of $52,190 were issued.
9.		Cash dividends of $30,000 were declared and paid.
10.		Treasury stock was purchased at a cost of $11,000.

Prepare a balance sheet at December 31, 2017. (Show only totals for current assets and current liabilities.) (List Property, Plant and Equipment in order of Land, Building and Equipment.)

Answer 1

SOLUTION

Tamarisk Corporation

Balance Sheet

December 31, 2017

	Amount ($)	Amount ($)	Amount ($)
Assets-
Current assets			309,100
Long-term investments			16,000
Property, Plant, and equipment
Land		32,190
Building ($121,770 + $28,770)	150,540
Less: Accum. depreciation ($31,770 + $5,770)	(37,540)	113,000
Equipment ($92,190 - $21,770)	70,420
Less: Accum. depreciation ($11,000-$9,770+$10,770)	(12,000)	58,420
Total			203,610
Intangible assets-patents ($41,770 - $2,500)			39,270
Total assets			567,980
Liabilities and Stockholders' Equity
Current liabilities ($151,770+ $14,770)			166,540
Long-term liabilities
Bonds payable ($101,770 + $52,190)			153,960
Total liabilities			320,500
Stockholders' equity
Common stock		182,190
Retained earnings ($46,190 + $30,100)		76,290
Total		258,480
Less: Cost of treasury stock		(11,000)
Total stockholders' equity			247,480
Total liabilities and stockholders' equity			567,980