Question

Presented below is the balance sheet of Sargent Corporation for the current year, 2017. MARIN CORPORATION BALANCE SHEET DECEMBER 31, 2017 $384,870 1,004,870 1,774,870 $3,164,610 $489,870 Current liabilities Current assets Investments Property, plant, and equipment Intangible assets 644,870 Long-term liabilities 1,724,870 Stockholders' equity 305,000 $3,164,610 The following information is presented 1. The current assets section includes cash $154,870, accounts receivable $174,870 less $14,870 for allowance for doubtful accounts, inventories $184,870, and unearned rent revenue $9,870. 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 $44,870; investments in common stock, short-term (trading) $84,870 and long-term (available-for-sale) $274,870; and bond sinking fund $240,260. The cost and fair value of investments in common stock are the same 3. Property, plant, and equipment includes buildings $1,044,870 less accumulated depreciation $364,870, equipment $454,870 less accumulated depreciation $184,870, land $504,870, and land held for future use $270,000 4. Intangible assets include a franchise $169,870, goodwill $104,870, and discount on bonds payable $30,260 5. Current liabilities include accounts payable $144,870, notes payable-short-term $84,870 and long-term $124,870, and income taxes payable $30,260 6. Long-term liabilities are composed solely of 796 bonds payable due 2025 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 74,870 shares for $449,220, and common stock, $1.00 par value, authorized 400,000 shares, issued 104,870 shares at an average price of $10. In addition, the corporation has retained earnings of $276,950 Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

2016 Balance Sheet

$154,870 Cash

$44,870 Cash surrender value

$84,870 Investment in Stock

$160,000 Accounts Receivable

$184,870 Inventory

$629,480 TOTAL CURRENT ASSETS

$504,870 Land

$270,000 Land for Future

$454,870 Machinery and Equipment

-$184,870 Accum Depreciation

$1044,870 Buildings

-$364,870 Accum Depreciation

$104,870 Godwill

$169,870 Franchise

$240,260 Bond sinking fund

$274,870 Investment in Stock

$2514,740 TOTAL NONCURRENT ASSETS

$3144,220 TOTAL ASSETS

$144,870 Accounts Payable

$9,870 Unearned Revenue

$84,870 Note Payable

$30,260 Income Taxes Payable

$269,870 TOTAL CURRENT LIABILITIES

$974,610 Bond Payable

$124,870 Notes Payable

$1099,480 TOTAL NONCURRENT LIABILITIES

$1369,350 TOTAL LIABILITIES

$449,220 Preferred Stock

$104,870 Common Stock par Value

$943,830 Paid-in Capital - Common Stock

$276,950 Retained Earnings

$1774,870 TOTAL EQUITY

$3144,220 TOTAL EQUITY + LIABILITIES

Step-by-step explanation:

• Each account was segregated on the Balance Sheets.

• Adjusted Unearned rent revenue to a liability as the amount will be recognized as sales
• Investments in common stock, short-term (trading) was classified as current assets.
• Accounts Receivable it's net of the allowance for doubtful accounts.