Balance Sheet Preparation The following is a December 31, 2015, post-closing tri
ID: 2416448 • Letter: B
Question
Balance Sheet Preparation
The following is a December 31, 2015, post-closing trial balance for the Happy Valley Corporation.
Additional Information:
1. The $105000 balance in the land account consists of $87600 for the cost of land where the plant and office buildings are located. The remaining amount represents the cost of land being held for speculation.
2. The $41600 in the marketable securities account represents an investment in the common stock of another corporation. Valley intends to sell one-half of the stock within the next year.
3. The notes payable account consists of a note due in six months and a $187000 note due in three equal annual installments, with the first payment due in August of 2015.
Required: Calculate the following balance sheet totals for the Valley Pump Corporation at December 31, 2014.
Common Stock
Current Assets
Property, Plant and Equipment (net)
Intangible and Other Assets
Total Assets
Short-term Note Payable
Current Liabilities
Long-term Liabilities
Total Equity
Total Liabilities and Equity
Please include a detailed answer for the accounts you included to find the balance of each.
Balance Sheet Preparation
The following is a December 31, 2015, post-closing trial balance for the Happy Valley Corporation.
Account Title Debits Credits Cash 25100 Accounts Receivable 53600 Inventories 82000 Interest Payable 8420 Marketable Securities 41600 Land 105000 Buildings 304000 Accumulated Depreciation -- Building 100000 Equipment 76000 Accumulated Depreciation -- Equipment 25600 Copyright (net of Amortization) 9760 Prepaid Expenses 32700 Accounts Payable 60200 Unearned Revenues 17300 Notes Payable 256000 Allowance for Uncollectible Accounts 4950 Common Stock ? Retained Earnings 69900Additional Information:
1. The $105000 balance in the land account consists of $87600 for the cost of land where the plant and office buildings are located. The remaining amount represents the cost of land being held for speculation.
2. The $41600 in the marketable securities account represents an investment in the common stock of another corporation. Valley intends to sell one-half of the stock within the next year.
3. The notes payable account consists of a note due in six months and a $187000 note due in three equal annual installments, with the first payment due in August of 2015.
Required: Calculate the following balance sheet totals for the Valley Pump Corporation at December 31, 2014.
Common Stock
Current Assets
Property, Plant and Equipment (net)
Intangible and Other Assets
Total Assets
Short-term Note Payable
Current Liabilities
Long-term Liabilities
Total Equity
Total Liabilities and Equity
Explanation / Answer
All the required caluculations are in the balance sheet below.
Assets Current assets Cash $ 25,100 Accounts receivable (Net) = 53600 - 4950 $ 48,650 Inventories $ 82,000 Marketable securities = 50% of 41600 $ 20,800 Prepaid expenses $ 32,700 Total current assets $209,250 Investments Marketable securities = 50% of 41600 $ 20,800 Land = 105000 - 87600 $ 17,400 Total investments $ 38,200 Property, plant and equipment Land $ 87,600 Buildings $304,000 Equipments $ 76,000 $467,600 Less: Accumulated depreciation = 100000 + 25600 $125,600 Net Property, plant and equipment $342,000 Intangible Assets Copyright $ 9,760 Total Assets $599,210 Liabilities and Shareholders' Equity Current liablities Accounts Payable $ 60,200 Unearned revenue $ 17,300 Notes payable $187,000 Interest payable $ 8,420 Current maturities of long term debts = (256000 - 187000)/3 $ 23,000 Total Current liabilities $295,920 Long term liabilities Notes payable = 23000 x 2 $ 46,000 Shareholders' Equity Common stock = 729790 - 542370 $187,390 Retained earnings $ 69,900 Total Shareholders' Equity $257,290 Total Liabilities and Shareholders' Equity $599,210Related Questions
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