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

Question

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

UHURA COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2014

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $164,670 and for the equipment, $109,670. The allowance for doubtful accounts has a balance of $21,670. 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. Enter account name only and do not provide the descriptive information provided in the question.)

Uhura Company
Balance Sheet
December 31, 2014

Assets

Liabilities and Stockholders' Equity

UHURA COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2014

Current assets   Cash $234,670   Accounts receivable (net) 344,670   Inventory (lower-of-average-cost-or-market) 405,670   Equity investments (trading)-at cost (fair value $124,840) 144,840 Property, plant, and equipment   Buildings (net) 574,840   Equipment (net) 164,840   Land held for future use 179,840 Intangible assets   Goodwill 84,670   Cash surrender value of life insurance 94,670   Prepaid expenses 16,670 Current liabilities   Accounts payable 139,840   Notes payable (due next year) 129,670   Pension obligation 86,840   Rent payable 53,670   Premium on bonds payable 57,670 Long-term liabilities   Bonds payable 504,840 Stockholders’ equity   Common stock, $1.00 par, authorized 400,000 shares, issued 294,670 294,670   Additional paid-in capital 164,670   Retained earnings ?

Explanation / Answer

                                       Uhura Company Balance Sheet December 31, 2014

Current Assets:

Particulars                                        Amount

Cash              = $234,670

Accounts receivable = $344,670

Less:

Allowance for doubtful= $21,670

____________________________$323,000

Equity investments   $124,840

Inventory = $405,670

Prepaid expenses= $16,670

____________________________________

Total Current assets = $1,104,850

Fixed Assets

Buildings= $574,840

Less:

Depreciation=$164,670

__________________ $410,170

Equipment = $164,840

Less:

Depreciation:=$109,670

_______________________$55,100

Intangible assets

Goodwill = $84,670

Long Term Investments:

Land held for future use=$179,840

Cash surrender value of life insurance=$94,670

_______________________________________

Total   = $274,510

Total Assets = $1,929,300

Liabilities and Stockholders' Equity:

Current Liability:

Particulars         Amount

Accounts payable=$139,840

Notes payable = $129,670

Rent payable = $53,670

__________________________

Total=$323,180

Long Term LIabilities:

Bonds payable = $504,840

Add:

Premium on bonds payable = $57,670

Pension obligation=$86,840

_________________________________

Total=$649,350

Stockholders’ equity=$294,670

Additional paid-in capital=$164,670

______________________________$459,340

Retained Earnings=$497,430

______________________________

Total Stock holder equity=$1,929,300

Retained Earnings= $1,929,300 - $323,180 - $649,350 - $294,670 - $164,670=$497,430

_______________________________________________________________________

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