Presented below is the balance sheet for HHD. Inc., at December 31, 2016. the ca

ID: 2427279 • Letter: P

Question

Presented below is the balance sheet for HHD. Inc., at December 31, 2016. the captions shown in the summarized statement above include the following: a. Current assets: cash, $163,000; accounts receivable. $213,000; inventories. $238,000; and prepaid insurance. $38,000. b. Investments: investments in common stock, short term. $103,000, and long term, $173,000; and restricted cash, long term, $263,000. c. Property, plant, and equipment: buildings, $1,630,000 less accumulated depreciation, $613,000; equipment, $630,000 less accumulated depreciation, $213,000; and land, $930,000. d. Intangible assets: patent, $123,000; and copyright, $103,000. e. Current liabilities: accounts payable, $113,000; notes payable, short term, $163,000, and long term, $103,000; and taxes payable, $73,000. f. Long-term liabilities: bonds payable due 2021. g. Shareholders' equity: common stock, $1,650,000; retained earnings, $930,000. Five hundred thousand shares of no par common stock are authorized, of which 330,000 shares were issued and are outstanding. Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2016.

Explanation / Answer

Cash 163,000 Accounts payable 113,000

Short term investment103,000 notes payable 163,000

Account receivable 213,000 taxes payable 73,000

inventories 238,000 total current liabilties 349,000

prepaid insurance 38,000 notes long term 103,000

total current assets 755,000 bonds 749,000

Investments total liabiltiies 1,201,000

long term 173,000

Restircted cash 263,000 Shareholder's Equity

Common Stock 1,650,000

PP&E Retained earnings 930,000

land 130,000 $2,580,000

building 1,630,000

less:Dep 613,000 1,017,000

Equipment 630,000

less:Dep 213,000 417,000

Intangible assets 226,000

total assets 3,781,000 total liabitlie & stockholders equity3,781,000