Skysong Corporation\'s balance sheet at the end of 2016 included the following i

Question

Skysong Corporation's balance sheet at the end of 2016 included the following items. Current assets (Cash $82,000) $236,570 Current liabilities $151,570 Land Buildings Equipment Accum. depr-buildings Accum. depr.-equipment Patents 32,190 Bonds payable 101,570 121,570 Common stock 182,190 92,190 Retained earnings 46,190 (31,570 Total (11,000) 41,570 $481,520 Total $481,520 The following information is available for 2017. 1. Net income was $56,470. 2. Equipment (cost $21,570 and accumulated depreciation $9,570) was sold for $11,570. 3. Depreciation expense was $5,570 on the building and $10,570 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,570. 6. An addition to the building was completed at a cost of $28,570. 7. A long-term investment (Equity) in stock was purchased for $16,000. 8. Bonds payable of $52,190 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000.

Explanation / Answer

SkySong Corporation Balance Sheet December 31, 2017 Assets Current assets ($82000 cash + 154570 + $29000 + 38940) $304,510 Long term investment $16,000 Property, plant, and equipment Land $32,190 Building ($121,750 + $28,570) $150,320 Less: Accum. depreciation ($31,570 + $5,570) -$37,140 $113,180 Equipment ($92,190 - 21,570) $70,620 Less: Accum. depreciation ($11,000 - $9,570 + 10,570) -$12,000 $58,620 Total property, plant, and equipment $203,990 Intangible assets—patents ($41,750 - $2500) ($40,000 – $2,500) $39,250 Total Assets $563,750 Liabilities and Stockholders’ Equity Current liabilities ($151,570 + $14,570) $166,140 Long-term liabilities Bonds payable ($101,570 + $52,190) $153,760 Total liabilities $319,900 Stockholders’ equity Common stock $182,190 Retained earnings ($46,190 + $56,470 – $30,000) $72,660 Total paid-in capital and retained earnings $254,850 Less: Cost of treasury stock -$11,000 Total stockholders’ equity $243,850 Total liabilities and stockholders’ equity $563,750 The amount for current assets could be computed last as its difference of total liabilities and stockholders’ equity and (fixed assets + intangible assets). $236570 - 82000 = 154570 = CA + Increased 29000 + difference

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