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Debit CreditCash $ 197,000Sales Revenue $ 8,100,000Debt Investments (trading) (a

ID: 2546348 • Letter: D

Question

Debit CreditCash $ 197,000Sales Revenue $ 8,100,000Debt Investments (trading) (at cost, $145,000) 153,000Cost of Goods Sold 4,800,000Debt Investments (long-term) 299,000Equity Investments (long-term) 277,000Notes Payable (short-term) 90,000Accounts Payable 455,000Selling Expenses 2,000,000Investment Revenue 63,000Land 260,000Buildings 1,040,000Dividends Payable 136,000Accrued Liabilities 96,000Accounts Receivable 435,000Accumulated Depreciation—Buildings 152,000Allowance for Doubtful Accounts 25,000Administrative Expenses 900,000Interest Expense 211,000Inventory 597,000Gain (extraordinary) 80,000Notes Payable (long-term) 900,000Equipment 600,000Bonds Payable 1,000,000Accumulated Depreciation—Equipment 60,000Franchises 160,000Common Stock ($5 par) 1,000,000Treasury Stock 191,000Patents 195,000Retained Earnings 78,000Paid-in Capital in Excess of Par 80,000 Totals $12,315,000 $12,315,000E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December 31, 2014.3InstructionsPrepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes.)

Explanation / Answer

Answer

Revenues:

Sales Revenue

8100000

Investment revenue

63000

Gain (Extra ordinary)

80000

Total revenue (A)

$8243000

Expenses:

Cost of Goods Sold

4800000

Selling expenses

2000000

Administrative expense

900000

Interest expense

211000

Total expenses (B)

$7911000

Net Income transferred to retained Earnings (A - B)

$332000

ASSETS

LIABILITIES & STOCKHOLDERS' EQUITY

Current Assets:

$

Current Liabilities:

$

Cash

197000

Notes Payable (short term)

90000

Debt Investments (trading)

153000

Accounts payable

455000

Accounts receivables, less Allowances $25000

410000

Dividends payable

136000

Inventory

597000

Accrued Liabilities

96000

Total Current Assets

1357000

Total Current Liabilities

777000

Long Term Assets:

Long Term Liabilities:

Buildings

1040000

Notes payable (Long term)

900000

Less: Accumulated Depreciation Building

-152000

Bonds Payable

1000000

Equipment

600000

Total Long Term Liabilities

1900000

Less: Accumulated Depreciation-Equipment

-60000

Land

260000

STOCKHOLDERS' EQUITY

Debt Instruments (long term)

299000

Common Stock ($5 par)

1000000

Equity Investments (long term)

277000

paid in capital in excess of Par

80000

Total Long Term Assets

2264000

Retained Earnings [78000+332000]

410000

Total

1490000

Intangibles Assets:

Less: Treasury Stock

-191000

Franchises

160000

Total Stockholder's Equity

1299000

patents

195000

Total Intangible Assets

355000

TOTAL ASSETS

$3976000

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$3976000

Revenues:

Sales Revenue

8100000

Investment revenue

63000

Gain (Extra ordinary)

80000

Total revenue (A)

$8243000

Expenses:

Cost of Goods Sold

4800000

Selling expenses

2000000

Administrative expense

900000

Interest expense

211000

Total expenses (B)

$7911000

Net Income transferred to retained Earnings (A - B)

$332000

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