(Preparation of a Corrected Balance Sheet) Presented below and on the next page is the balance sheet of Kishwaukee Corporation as of December 31, 2012.
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KISHWAUKEE CORPORATION
BALANCE SHEET
DECEMBER 31, 2012
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Assets
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Goodwill
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$120,000
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Buildings
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1,640,000
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Inventory
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312,100
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Land
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950,000
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Accounts receivable
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170,000
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Treasury stock (50,000 shares)
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87,000
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Cash on hand
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175,900
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Assets allocated to trustee for plant expansion
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Cash in bank
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70,000
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Debt investments (held-to-maturity)
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138,000
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$3,663,000
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Equities
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Notes payable
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$600,000
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Common stock, authorized and issued, 1,000,000 shares, no par
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1,150,000
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Retained earnings
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858,000
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Appreciation capital
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570,000
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Income tax payable
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75,000
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Reserve for depreciation recorded to date on the building
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410,000
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$3,663,000
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Instructions
Prepare a corrected classified balance sheet in good form. The notes above are for information only.