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The following information was obtained from the accounts of Lukes, Inc., as of D

ID: 2672666 • Letter: T

Question

The following information was obtained from the accounts of Lukes, Inc., as of December 31, 2008. It is presented in scrambled order.
Common stock, no par value, 10,000 shares
authorized, 5,724 shares issued $ 3,180
Retained earnings 129,950
Deferred income tax liability (long term) 24,000
Long-term debt 99,870
Accounts payable 35,000
Buildings 75,000
Machinery and equipment 300,000
Land 11,000
Accumulated depreciation 200,000
Cash 3,000
Receivables, less allowance of $3,000 58,000
Accrued income taxes 3,000
Inventory 54,000
Other accrued expenses 8,000
Current portion of long-term debt 7,000
Prepaid expenses 2,000
Other assets (long term) 7,000

Required
Prepare a classified balance sheet in report form. For assets, use the classifications of current assets, plant and equipment, and other assets. For liabilities, use the classifications of current liabilities and long-term liabilities.

Explanation / Answer

Current assets:

     Cash

$

3,000

     Receivables, less allowance of $3,000

58,000

     Inventories

54,000

     Prepaid expenses

2,000

     Total current assets

$

117,000

Plant and equipment:

     Buildings

$

75,000

     Machinery and equipment

300,000

375,000

     Less: accumulated depreciation

200,000

175,000

Land

11,000

Other assets

7,000

            Total assets

$

310,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

     Accounts payable

$

35,000

     Accrued income taxes

3,000

     Other accrued expenses

8,000

     Current portion of long-term debt

7,000

     Total current liabilities:

$

53,000

Long-term liabilities:

     Long-term debt, less current portion

99,870

     Deferred income tax liability

24,000

     Total long-term liabilities

$

123,870

Stockholders’ equity:

     Common stock, no par value 10,000 shares                                     authorized, 5,724 shares issued

3,180

     Retained earnings

129,950

     Total stockholders’ equity

$

133,130

     Total liabilities and stockholders’ equity

$

310,000

Current assets:

     Cash

$

3,000

     Receivables, less allowance of $3,000

58,000

     Inventories

54,000

     Prepaid expenses

2,000

     Total current assets

$

117,000

Plant and equipment:

     Buildings

$

75,000

     Machinery and equipment

300,000

375,000

     Less: accumulated depreciation

200,000

175,000

Land

11,000

Other assets

7,000

            Total assets

$

310,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

     Accounts payable

$

35,000

     Accrued income taxes

3,000

     Other accrued expenses

8,000

     Current portion of long-term debt

7,000

     Total current liabilities:

$

53,000

Long-term liabilities:

     Long-term debt, less current portion

99,870

     Deferred income tax liability

24,000

     Total long-term liabilities

$

123,870

Stockholders’ equity:

     Common stock, no par value 10,000 shares                                     authorized, 5,724 shares issued

3,180

     Retained earnings

129,950

     Total stockholders’ equity

$

133,130

     Total liabilities and stockholders’ equity

$

310,000