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The following balance sheet for the Hubbard Corporation was prepared by the company: Additional...

Question:

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $ 762,000
Land 286,000
Cash 72,000
Accounts receivable (net) 144,000
Inventories 264,000
Machinery 292,000
Patent (net) 112,000
Investment in marketable equity securities 84,000
      Total assets $ 2,016,000
Liabilities and Shareholders' Equity
Accounts payable $ 227,000
Accumulated depreciation 267,000
Notes payable 524,000
Appreciation of inventories 92,000
Common stock, authorized and issued 112,000 shares of no par stock 448,000
Retained earnings 458,000
        Total liabilities and stockholders' equity $ 2,016,000

Additional information:

1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $62,000 but, due to a significant increase in market value, is listed at $144,000. The increase in the land account was credited to retained earnings.

2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $32,000 of which will be sold in the coming year. The remainder will be held indefinitely.

3. Notes payable are all long-term. However, a $220,000 note requires an installment payment of $55,000 due in the coming year.

4. Inventories are recorded at current resale value. The original cost of the inventories is $172,000.

Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Balance Sheet :

The balance sheet is the statement of the company that is prepared at the end of the financial year. this is useful for the managers, directors, shareholders, creditors, and investors.

Answer and Explanation:

Preparation of Balance Sheet:

HUBBARD CORPORATION
Balance Sheet
Particulars Amount
Current assets
Cash $72,000
Accounts receivable (net) $144,000
Inventories $172,000
Investment avialable for sales $32,000
Total Current assets $420,000
Fixed assets
Buildings $762,000
Land $142,000
Machinery $292,000
Accumulated depreciation $(267,000)
Total Fixed assets $929,000
Investment
Investment in marketable equity securities $52,000
Land held for sale $144,000
Total investment $196,000
Intangible assets
Patent (net) $112,000
Total assets $1,657,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $227,000
Notes payable $55,000
Total current liabilites $282,000
Long term liabilites
Notes Payable $469,000
Total liabilites $751,000
Share holder's equity
Common stock, authorized and issued 112,000  * 4 $448,000
Retained earnings $458,000
Total shareholder's equity $906,000
Total liabilities and stockholders' equity $1,657,000


Learn more about this topic:

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Comparative Statements as Balance Sheet Disclosures

from Accounting 201: Intermediate Accounting I

Chapter 4 / Lesson 9
718

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