Question

Presented below is the trial balance of Sage Corporation at December 31, 2020.

Debit Credit
Cash $201,720
Sales $8,101,160
Debt Investments (trading) (at cost, $145,000) 154,160
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 303,720
Equity Investments (long-term) 281,720
Notes Payable (short-term) 91,160
Accounts Payable 456,160
Selling Expenses 2,001,160
Investment Revenue 67,870
Land 261,160
Buildings 1,044,720
Dividends Payable 140,720
Accrued Liabilities 97,160
Accounts Receivable 436,160
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 26,160
Administrative Expenses 904,870
Interest Expense 215,870
Inventory 601,720
Gain 84,870
Notes Payable (long-term) 904,720
Equipment 601,160
Bonds Payable 1,004,720
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,001,160
Treasury Stock 192,160
Patents 195,000
Retained Earnings 82,720
Paid-in Capital in Excess of Par 84,720
Totals $12,355,300 $12,355,300

Required:
Prepare a balance sheet at December 31, 2020, for Sage Corporation.

Answer 1

Balance sheet at December 31, 2020, for Sage Corporation.

Current Assets

Cash $201,720

Debt Investments (trading) $154,160

Equity Investments (long-term) $281,720

Accounts Receivable $436,160

Allowance for Doubtful Accounts ($26,160)

Inventory $601,720

Total Current Assets $1,649,320

Non-Current Assets

Land $261,160

Buildings $1,044,720

Franchises $160,000

Patents $195,000

Accumulated Depreciation-Buildings ($152,000)

Accumulated Depreciation-Equipment ($60,000)

Total Non-Current Assets $1,448,880

Current Liabilities

Notes Payable (short-term) $91,160

Dividends Payable $140,720

Accrued Liabilities $97,160

Total Current Liabilities $329,040

Non-Current Liabilities

Accounts Payable $456,160

Notes Payable (long-term) $904,720

Bonds Payable $1,004,720

Total Non-Current Liabilities $2,365,600

Stockholder's Equity

Common Stock ($5 par) $1,001,160

Treasury Stock $192,160

Retained Earnings $82,720

Paid-in Capital in Excess of Par $84,720

Total Stockholder's Equity $1,360,760