Question & Answer: The December 31, 2016, post-closing trial balance ($ in thousands) for Libby Corporation is presented Debits Credits Cash Accounts receivable Prepaid insurance 23,500 57,000 32…..

The December 31, 2016, post-closing trial balance ($ in thousands) for Libby Corporation is presented Debits Credits Cash Accounts receivable Prepaid insurance 23,500 57,000 32,000 5,500 110,000 47,000 150,000 Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents (unamortized balance) Accounts payable Notes payable, due 2017 Interest payable Bonds payable, due 2026 Common stock, no par, 24,000 shares authorized, issued, 52,000 135,500 32,000 6,000 67,000 11,000 130,000 180,000 and outstanding Retained earnings 47,500 Totals 566,500 566,500 Required: Prepare a classified balance sheet for Libby Corporation at December 31, 2016. (Enter your answers in the order of their liquidity. Negative amounts should be entered by a minus sign. Enter your answers in thousands of dollars.)Question & Answer: The December 31, 2016, post-closing trial balance ($ in thousands) for Libby Corporation is presented Debits Credits Cash Accounts receivable Prepaid insurance 23,500 57,000 32..... 1

The December 31, 2016, post-closing trial balance ($ in thousands) for Libby Corporation is presented Debits Credits Cash Accounts receivable Prepaid insurance 23,500 57,000 32,000 5,500 110,000 47,000 150,000 Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents (unamortized balance) Accounts payable Notes payable, due 2017 Interest payable Bonds payable, due 2026 Common stock, no par, 24,000 shares authorized, issued, 52,000 135,500 32,000 6,000 67,000 11,000 130,000 180,000 and outstanding Retained earnings 47,500 Totals 566,500 566,500 Required: Prepare a classified balance sheet for Libby Corporation at December 31, 2016. (Enter your answers in the order of their liquidity. Negative amounts should be entered by a minus sign. Enter your answers in thousands of dollars.)

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SOLUTION:

Assets
Cash 23500
Accounts receivable 32000
Less: Allowance for uncollectible accounts -8500
Inventories 110000
Prepaid insurance 5500
Total current assets 162500
Investments 57000
Property, plant, and equipment:
Land 47000
Net book value of Buildings (150,000 – 52000) 98000
Net book value of Equipment (135,500- 32,000) 103500
Less: Accumulated depreciation
Net property, plant, and equipment 248500
Intangibles:
Patents 6000
Total assets 474000 ( =162500+57000+248500+6000)
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable 38500
Notes payable, 67000
Interest payable 11000
Total current liabilities 116500
Long-term liabilities
Bonds payable, 130000
Shareholders’ equity
Common stock 180000
Retained earnings 47500
Total shareholders’ equity 227500
Total liabilities and shareholders’ equity 474000

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