Bruno Company has decided to expand its operations. The bookkeeper recently comp

Question

Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2012 Current assets   Cash $261,620   Accounts receivable (net) 341,620   Inventories (lower-of-average-cost-or-market) 402,620   Equity investments (trading)%u2014at cost (fair value $123,840) 143,840 Property, plant, and equipment   Buildings (net) 573,840   Equipment (net) 163,840   Land held for future use 178,840 Intangible assets   Goodwill 81,620   Cash surrender value of life insurance 91,620   Prepaid expenses 13,620 Current liabilities   Accounts payable 138,840   Notes payable (due next year) 126,620   Pension obligation 85,840   Rent payable 50,620   Premium on bonds payable 54,620 Long-term liabilities   Bonds payable 503,840 Stockholders%u2019 equity   Common stock, $1.00 par, authorized 400,000 shares, issued 291,620 291,620   Additional paid-in capital 181,620   Retained earnings ?
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $161,620 and for the office equipment, $106,620. The allowance for doubtful accounts has a balance of $18,620. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.)
Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2012 Current assets   Cash $261,620   Accounts receivable (net) 341,620   Inventories (lower-of-average-cost-or-market) 402,620   Equity investments (trading)%u2014at cost (fair value $123,840) 143,840 Property, plant, and equipment   Buildings (net) 573,840   Equipment (net) 163,840   Land held for future use 178,840 Intangible assets   Goodwill 81,620   Cash surrender value of life insurance 91,620   Prepaid expenses 13,620 Current liabilities   Accounts payable 138,840   Notes payable (due next year) 126,620   Pension obligation 85,840   Rent payable 50,620   Premium on bonds payable 54,620 Long-term liabilities   Bonds payable 503,840 Stockholders%u2019 equity   Common stock, $1.00 par, authorized 400,000 shares, issued 291,620 291,620   Additional paid-in capital 181,620   Retained earnings ?
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $161,620 and for the office equipment, $106,620. The allowance for doubtful accounts has a balance of $18,620. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.) Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2012 Current assets   Cash $261,620   Accounts receivable (net) 341,620   Inventories (lower-of-average-cost-or-market) 402,620   Equity investments (trading)%u2014at cost (fair value $123,840) 143,840 Property, plant, and equipment   Buildings (net) 573,840   Equipment (net) 163,840   Land held for future use 178,840 Intangible assets   Goodwill 81,620   Cash surrender value of life insurance 91,620   Prepaid expenses 13,620 Current liabilities   Accounts payable 138,840   Notes payable (due next year) 126,620   Pension obligation 85,840   Rent payable 50,620   Premium on bonds payable 54,620 Long-term liabilities   Bonds payable 503,840 Stockholders%u2019 equity   Common stock, $1.00 par, authorized 400,000 shares, issued 291,620 291,620   Additional paid-in capital 181,620   Retained earnings ?
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $161,620 and for the office equipment, $106,620. The allowance for doubtful accounts has a balance of $18,620. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.) BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2012 BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2012 Current assets   Cash $261,620   Accounts receivable (net) 341,620   Inventories (lower-of-average-cost-or-market) 402,620   Equity investments (trading)%u2014at cost (fair value $123,840) 143,840 Property, plant, and equipment   Buildings (net) 573,840   Equipment (net) 163,840   Land held for future use 178,840 Intangible assets   Goodwill 81,620   Cash surrender value of life insurance 91,620   Prepaid expenses 13,620 Current liabilities   Accounts payable 138,840   Notes payable (due next year) 126,620   Pension obligation 85,840   Rent payable 50,620   Premium on bonds payable 54,620 Long-term liabilities   Bonds payable 503,840 Stockholders%u2019 equity   Common stock, $1.00 par, authorized 400,000 shares, issued 291,620 291,620   Additional paid-in capital 181,620   Retained earnings ?

Explanation / Answer

First to Calculate Net Income = Changes in Current Assets - Changes in Current Liabilities
Change in Current Assets Cash 261620 Accounts Recievable 341620 Inventory 402620 Building 573840 Equipment 163840 Land held 178840 Total 1922380 Changes in Current Liabilities Goodwill 81620 Account Payable 138840 Bond payble-Premium 449220 Rent Payble 50620 Pension Obligation 85840 Total 806140 Net Income 1116240 Retained Earning = Retained Earning Balance + Net Income - Devidend(additional paid in Capital) Retained Earning = Retained Earning + 1116240 - 181620 Retained Earning = Nil + 1116240 -181620 Retained Earning = 934620

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.