Sandhill Company has decided to expand its operations. The bookkeeper recently c

Question

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

SANDHILL COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2017

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $163,000 and for the equipment, $108,000. The allowance for doubtful accounts has a balance of $20,000. 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.)

SANDHILL COMPANY
BALANCE SHEET
FOR THE YEAR ENDED 2017

Current assets   Cash $233,000   Accounts receivable (net) 343,000   Inventory (lower-of-average-cost-or-market) 404,000   Equity investments (marketable)-at cost (fair value $123,000) 143,000 Property, plant, and equipment   Buildings (net) 573,000   Equipment (net) 163,000   Land held for future use 178,000 Intangible assets   Goodwill 83,000   Cash surrender value of life insurance 93,000   Prepaid expenses 15,000 Current liabilities   Accounts payable 138,000   Notes payable (due next year) 128,000   Pension obligation 85,000   Rent payable 52,000   Premium on bonds payable 56,000 Long-term liabilities   Bonds payable 503,000 Stockholders’ equity   Common stock, $1.00 par, authorized 400,000 shares, issued 293,000 293,000   Additional paid-in capital 163,000   Retained earnings ?

Explanation / Answer

SANDHILL COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 Assets Amount Cash            2,33,000 Accounts Receviable            3,63,000 Allowances for Bad Debts              (20,000) Inventory            4,04,000 Other current Assets            1,08,000 Total Current          10,88,000 Equity Investment            1,43,000 Building            7,36,000 Equipment            2,71,000 Accumulated Depreciation          (2,71,000) Land            1,78,000 Goodwill                83,000 Total Non Current          11,40,000 Total Assets          22,28,000 Liabilities Accounts Payable            1,38,000 ST Notes Payable            1,28,000 Other Current Liabilities            1,08,000 Total Current            3,74,000 Bonds Payable            5,03,000 Other Long Term Liabilities                85,000 Total Non Current            5,88,000 Total Liabilities            9,62,000 Stock Holders Equity Common Stock            2,93,000 Additional Paid in Capital            1,63,000 Retained Earning            8,10,000 Total SE          12,66,000 Total Liabilities & SE          22,28,000

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