In: Accounting
HUBBARD CORPORATION | |||
Balance Sheet | |||
At December 31, 2018 | |||
Assets | |||
Buildings | $ | 756,000 | |
Land | 268,000 | ||
Cash | 66,000 | ||
Accounts receivable (net) | 132,000 | ||
Inventories | 252,000 | ||
Machinery | 286,000 | ||
Patent (net) | 106,000 | ||
Investment in marketable equity securities | 72,000 | ||
Total assets | $ | 1,938,000 | |
Liabilities and Shareholders' Equity | |||
Accounts payable | $ | 221,000 | |
Accumulated depreciation | 261,000 | ||
Notes payable | 512,000 | ||
Appreciation of inventories | 86,000 | ||
Common stock,
authorized and issued 106,000 shares of no par stock |
424,000 | ||
Retained earnings | 434,000 | ||
Total liabilities and shareholders' equity | $ | 1,938,00 |
Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The increase in the land account was credited to retained earnings.
Marketable equity securities consist of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely.
Notes payable are all long-term. However, a $160,000 note requires an installment payment of $40,000 due in the coming year.
Inventories are recorded at current resale value. The original cost of the inventories is $166,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard
Corporation at December 31, 2018. (Amounts to be deducted
should be indicated by a minus sign.)
HUBBARD CORPORATION | ||
Balance Sheet | ||
At December 31, 2018 | ||
Assets | ||
Current assets | ||
Cash | 66000 | |
Marketable securities | 26000 | |
Inventories | 166000 | |
Accounts receivable (net) | 132000 | |
Total current assets | 390000 | |
Investments | ||
Marketable securities ($72000 - $26000) | 46000 | |
Land held for sale | 56000 | |
Total investments | 102000 | |
Property. Plant, and equipment | ||
Land ($268000 - $132000) | 136000 | |
Buildings | 756000 | |
Machinery | 286000 | |
1178000 | ||
Accumulated depreciation | -261000 | |
Property, plant, and equipment (net) | 917000 | |
Intangible assets | ||
Patent | 106000 | |
Total assets | 1515000 | |
Liabilities and Shareholders' Equity | ||
Current liabilities | ||
Accounts payable | 221000 | |
Current maturities of long-term debt | 40000 | |
Total current liabilities | 261000 | |
Long-term liabilities | ||
Notes payable | 472000 | |
Total liabilities | 733000 | |
Shareholders' equity | ||
Common stock | 424000 | |
Retained earnings ($434000 - $76000) | 358000 | |
Total shareholders' equity | 782000 | |
Total liabilities and shareholders' equity | 1515000 |