Problem: (Preparation of a Balance Sheet)
Presented below is the trial balance of John Nalezny Corporation at December 31, 2004.
Debits Credits
Cash $ 197,000
Sales $ 8,100,000
Trading Securities (at cost, $145,000) 153,000
Cost of Goods Sold 4,800,000
Long-term Investments in Bonds 299,000
Long-term Investments in Stocks 277,000
Short-term Notes Payable 90,000
Accounts Payable 455,000
Selling Expenses 2,000,000
Investment Revenue 63,000
Land 260,000
Buildings 1,040,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Accounts Receivable 435,000
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 25,000
Administrative Expenses 900,000
Interest Expense 211,000
Inventories 597,000
Extraordinary Gain 80,000
Prior Period Adjustment-Depr. Error 140,000
Long-term Notes Payable 900,000
Equipment 600,000
Bonds Payable 1,000,000
Accumulated Depreciation-Equipment 60,000
Franchise (net of $80,000 amortization) 160,000
Common Stock ($5 par) 1,000,000
Treasury Stock 191,000
Patent (net of $30,000 amortization) 195,000
Retained Earnings 218,000
Additional Paid-in Capital 80,000
Totals $12,455,000 $12,455,000
Instructions:
Prepare a balance sheet at December 31, 2004, for John Nalezny Corporation. Ignore income taxes.