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Presented below is the balance sheet of Sargent Corporation for the current year, 2017 MARIN CORPORATION BALANCE SHEET DECEMBER 31, 2017 Current assets S 487,550 Current liabilities s382,550 1,002,550 1,772,550 $3,157,650 642,550 Long-term iabilities 1,722,550 Stockholders’ equity Property, plant, and equipment Intangible assets 305,000 $3,157,650 The following information is presented 1. The current assets section includes cash 152,550, accounts receivable 172,550 less $12,550 for allo vance for doubtful accounts, inventories S 182,550, and unearned rent revenue $7,550 Inventory is stated on the lower of FIFO cost or The investments section includes the cash surrender value of a life insurance contract $42,550; investments in common stock, short-term $82,550 and long-term $272,550; and bond sinking fund $244,900. The cost and fair value of investments in common stock are the same 2. 3. Property, plant, and equipment includes buildings $1,042,550 less accumulated depreciation $362,550, equipment $452,550 less accumulated depreciation $182,550, land $502,550, and land held for future use $270,000. 4. Intangible assets include a franchise $167,550, goodwill $102,550, and discount on bonds payable $34,900. S. Current liabilities indlude accounts payable $142,550, notes payable-short-term $82,550 and long-term $122,550, and income taxes payable $34,900. 6. Long-term liabilities are composed solely of 7% bonds payable due 2025. Stockholders’ equity has preferred stock, no par value, authorized 200,000 shares, issued 72,550 shares for $435,300, and common stock, $1.00 par value, authorized 4o0,000 shares, issued 102,550 shares at an average price of $10. In addition, the corporation has retained earnings of $311,750 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.)
Expert Answer
| Marin Corporation’s Classified Balance Sheet | ||||
| Assets | ||||
| Current assets:- | ||||
| Cash | 1,52,550.00 | |||
| Inventory | 1,82,550.00 | |||
| Accounts Receivable | 1,72,550.00 | |||
| Less:- Allowance for d. debts | -12,550.00 | 1,60,000.00 | ||
| Short term investments | 82,550.00 | |||
| Total current assets | 5,77,650.00 | |||
| Long term investments: | ||||
| Land | 5,02,550.00 | |||
| Cash surrender value of life insurance | 42,550.00 | |||
| Long term investments | 2,72,550.00 | |||
| Bond sinking fund | 2,44,900.00 | |||
| Total Long term investments | 10,62,550.00 | |||
| PPE :- | ||||
| Land held for future use | 2,70,000.00 | |||
| Buildings | 10,42,550.00 | |||
| Less:- Acc. Dep. | -3,62,550.00 | 6,80,000.00 | ||
| Equipment | 4,52,550.00 | |||
| Less:- Acc. Dep. | -1,82,550.00 | 2,70,000.00 | 12,20,000.00 | |
| Intangible assets | ||||
| Goodwill | 102550 | |||
| Franchise | 167550 | 270100 | ||
| Total Assets | 31,30,300.00 | |||
| Liabilities and owner’s Equity | ||||
| Current Liabilities | ||||
| A/P | 1,42,550.00 | |||
| Short term Notes payable | 82,550.00 | |||
| Unearned rent revenue | 7,550.00 | |||
| Income taxes payable | 34,900.00 | |||
| Total Current Liabilities | 2,67,550.00 | |||
| Long Term Liabilitiies | ||||
| Long term Notes payable | 1,22,550.00 | |||
| Bonds payable | 10,02,550.00 | |||
| Less:- discount premium on bonds payable | -34,900.00 | 9,67,650.00 | 10,90,200.00 | |
| Total Liabilities | 13,57,750.00 | |||
| Shareholder’s equity | ||||
| Paid in capital : | ||||
| Common stock ( $ 1 par value , authorised 400000 shares, issued 102550 shares ) | 1,02,550.00 | |||
| Preferred stock ( no par , authorised 200000 sares, issued 72550 shares ) | 4,35,300.00 | |||
| Additional PIC ( 102550 * 9 ) | 9,22,950.00 | |||
| 14,60,800.00 | ||||
| Retained earnings | 3,11,750.00 | |||
| Total Shareholder’s equity | 17,72,550.00 | |||
| Total Liabilities and owner’s Equity | 31,30,300.00 | |||
