Based on the following information and the post-closing trial balance that follo

Question

Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31 of the current year:

Total assets, $3,569,300

The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability. Vacation pay payable: Current liability $7,140 Long-term liability 3,360 The unfunded pension liability is a long-term liability. Notes payable: Current liability $  70,000 Long-term liability 630,000

Explanation / Answer

KORNETT COMPANY Balance Sheet December 31, 20Y5 Assets Current assets Petty cash 4500 Cash 243960 Notes receivable 100000 Accounts receivable 470000 Allowance for doubtful accounts -16000 454000 Interest receivable 1875 Office Supplies 13400 Inventory 320000 Prepaid insurance 45640 Total current assets 1183375 Property, Plant, Equipment Land 654925 Building 900000 Accumulated depreciation-Buildings -36000 864000 Office equipment 246000 Accumulated depreciation-office equipment -44000 202000 Store Equipment 112000 Accumulated depreciation-store equipment -5000 107000 Total Property, Plant, Equipment 1827925 Intangible Assets Mineral rights 546000 Accumulated depletion -30000 516000 Patents 42000 Total intangible assets 558000 Total Assets 3569300 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable 131600 Interest payable 28000 Salaries payable 157000 Product warranty payable 76000 Vacation pay payable 7140 Current portion of notes payable 70000 Social security tax payable 25470 Medicare tax payable 4710 Employees federal income tax payable 40000 State unemployment tax payable 270 Federal unemployment tax payable 40 Total current liabilities 540230 Long-term liabilities Vacation pay payable 3360 Unfunded pension liability 50700 Long-term notes payable 630000 Total long-term liabilities 684060 Total liabilities 1224290 Stockholders' Equity Common stock 500000 Retained earnings 1845010 Total Stockholders' Equity 2345010 Total Liabilities and Stockholders' Equity 3569300

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