Question

Presented below is the trial balance of Splish Corporation at December 31, 2017.

		Debit		Credit
Cash		$   200,230
Sales				$ 8,104,580
Debt Investments (trading) (cost, $145,000)		157,580
Cost of Goods Sold		4,800,000
Debt Investments (long-term)		302,230
Equity Investments (long-term)		280,230
Notes Payable (short-term)				94,580
Accounts Payable				459,580
Selling Expenses		2,004,580
Investment Revenue				67,550
Land		264,580
Buildings		1,043,230
Dividends Payable				139,230
Accrued Liabilities				100,580
Accounts Receivable		439,580
Accumulated Depreciation-Buildings				152,000
Allowance for Doubtful Accounts				29,580
Administrative Expenses		904,550
Interest Expense		215,550
Inventory		600,230
Gain (extraordinary)				84,550
Notes Payable (long-term)				903,230
Equipment		604,580
Bonds Payable				1,003,230
Accumulated Depreciation-Equipment				60,000
Franchises		160,000
Common Stock ($5 par)				1,004,580
Treasury Stock		195,580
Patents		195,000
Retained Earnings				81,230
Paid-in Capital in Excess of Par				83,230
Totals		$12,367,730		$12,367,730

Prepare a balance sheet at December 31, 2017, for Splish Corporation. (Ignore income taxes).

Answer 1

Balance Sheet
For the year Ended December 31, 2017
Assets
Current Assets
Cash	$200,230
Debt Investments (trading)	$157,580
Accounts Receivable	$439,580
Less: Allowance for doubtful accounts	-$29,580
Inventory	$600,230
Total Current Assets		$1,368,040
Long-term investments
Debt Investments (long-term)	$302,230
Equity Investments (long-term)	$280,230	$582,460
Property, plant, and equipment
Land	$264,580
Building	$1,043,230
Acc. Depreciation - Building	-$152,000
Equipment	$604,580
Acc. Depreciation - Equipment	-$60,000
Total Property, plant, and equipment		$1,700,390
Intangible Assets
Patents	$195,000
Franchises	$160,000
Total Intangible Assets		$355,000
Total Assets		$4,005,890
Liabilities and Stockholders’ Equity
Current Libilities
Accounts Payable	$459,580
Notes Payable (short-term)	$94,580
Dividend payable	$139,230
Accrued Liabilities	$100,580
Total Current Liabilities	$793,970
Non -Current Libilities
Bonds payable	$1,003,230
Notes Payable (long-term)	$903,230
Total Non -Current Libilities	$1,906,460
Total Liabilities		$2,700,430
Stockholders’ equity
Common Stock ($5 par)	$1,004,580
Paid-in Capital in Excess of Par	$83,230
Total Paid in capital	$1,087,810
Retained earnings	$413,230
	$1,501,040
Less: Treasury Stock	$195,580
Total stockholders’ equity		$1,305,460
Total Liabilities and Owner's Equity		$4,005,890
Working
Retained earnings = $81,230 + $332,000 (net Income)