Presented below is the balance sheet of Sargent Corporation for the current year, 2014.
SARGENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2014 |
| Current assets |
mce_markernbsp; 488,210 |
Current liabilities |
mce_markernbsp; 383,210 |
| Investments |
643,210 |
Long-term liabilities |
1,003,210 |
| Property, plant, and equipment |
1,723,210 |
Stockholders' equity |
1,773,210 |
| Intangible assets |
305,000 |
$3,159,630 |
| $3,159,630 |
The following information is presented.
1. The current assets section includes cash $153,210, accounts receivable $173,210 less $13,210 for allowance for doubtful accounts, inventories $183,210, and unearned rent revenue $8,210. Inventory is stated on the lower-of-FIFO-cost-or-market.
2. The investments section includes the cash surrender value of a life insurance contract $43,210; investments in common stock, short-term (trading) $83,210 and long-term (available-for-sale) $273,210; and bond sinking fund $243,580. The cost and fair value of investments in common stock are the same.
3. Property, plant, and equipment includes buildings $1,043,210 less accumulated depreciation $363,210; equipment $453,210 less accumulated depreciation $183,210; land $503,210; and land held for future use $270,000.
4. Intangible assets include a franchise $168,210; goodwill $103,210; and discount on bonds payable $33,580.
5. Current liabilities include accounts payable $143,210; notes payable-short-term $83,210 and long-term $123,210; and income taxes payable $33,580.
6. Long-term liabilities are composed solely of 7% bonds payable due 2022.
7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 73,210 shares for $439,260; and common stock, $1.00 par value, authorized 400,000 shares, issued 103,210 shares at an average price of $10. In addition, the corporation has retained earnings of $301,850.
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.