The following balance sheet, prepared by Whoops Bookkeeping Service, has been gi
ID: 461989 • Letter: T
Question
The following balance sheet, prepared by Whoops Bookkeeping Service, has been given to you to review.
Required:
Prepare a corrected, properly classified balance sheet in report form.
Butler Corporation
Balance Sheet
For Year Ended December 31, 2010
Current Assets:
Current Liabilities:
Cash
$ 6,200
Accounts Payable
$ 15,000
Accounts Receivable
13,000
Wages Payable
2,000
Inventory
30,000
Accumulated Depreciation
—Equipment
5,000
Treasury Stock
10,000
Accumulated Depreciation
—Buildings
10,000
Property, Plant, and Equipment:
Land
7,000
Long-Term Liabilities:
Trademarks
5,000
Current Taxes Payable
4,000
Buildings
45,000
Premium on Common Stock
3,000
Equipment
17,000
Bonds Payable
60,000
Intangibles:
Notes Payable—Long Term
10,000
Organization Costs
4,000
Discount on Bonds Payable
2,000
Owners' Equity:
Common Stock
31,200
Investments:
Retained Earnings
12,000
Long-Term Investment in
Bonds
8,000
Allowance for Doubtful
Accounts
2,000
Marketable Securities—
Short-Term
7,000
Total Assets
$154,200
$154,200
Butler Corporation
Balance Sheet
For Year Ended December 31, 2010
Current Assets:
Current Liabilities:
Cash
$ 6,200
Accounts Payable
$ 15,000
Accounts Receivable
13,000
Wages Payable
2,000
Inventory
30,000
Accumulated Depreciation
—Equipment
5,000
Treasury Stock
10,000
Accumulated Depreciation
—Buildings
10,000
Property, Plant, and Equipment:
Land
7,000
Long-Term Liabilities:
Trademarks
5,000
Current Taxes Payable
4,000
Buildings
45,000
Premium on Common Stock
3,000
Equipment
17,000
Bonds Payable
60,000
Intangibles:
Notes Payable—Long Term
10,000
Organization Costs
4,000
Discount on Bonds Payable
2,000
Owners' Equity:
Common Stock
31,200
Investments:
Retained Earnings
12,000
Long-Term Investment in
Bonds
8,000
Allowance for Doubtful
Accounts
2,000
Marketable Securities—
Short-Term
7,000
Total Assets
$154,200
$154,200
Explanation / Answer
Butler Corporation
Balance Sheet
December 31, 2010
Assets
Current Assets:
Cash
$ 6,200
Marketable Securities
7,000
Accounts Receivable
$13,000
Less: Allowance for Doubtful Accounts
(2,000)
11,000
Inventory
30,000
Total Current Assets
$ 54,200
Tangible Assets:
Land
$ 7,000
Equipment
$17,000
Less: Accumulated Depreciation—Equipment
(5,000)
12,000
Buildings
45,000
Less: Accumulated Depreciation—Buildings
(10,000)
35,000
54,000
Investments:
Investment in Bonds
8,000
Intangibles:
Trademarks
$ 5,000
Organization Costs
4,000
9,000
Total Assets
$125,200
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable
$15,000
Wages Payable
2,000
Current Taxes Payable
4,000
Total Current Liabilities
$ 21,000
Long-Term Debt:
Notes Payable—Long-Term
$10,000
Bonds Payable
$60,000
Less: Discount on Bonds Payable
(2,000)
58,000
Total Long-Term Debt
68,000
Owners' Equity:
Common Stock
31,200
Premium on Common Stock
3,000
Retained Earnings
12,000
Treasury Stock
(10,000)
36,200
Total Liabilities and Stockholders' Equity
$125,200
Butler Corporation
Balance Sheet
December 31, 2010
Assets
Current Assets:
Cash
$ 6,200
Marketable Securities
7,000
Accounts Receivable
$13,000
Less: Allowance for Doubtful Accounts
(2,000)
11,000
Inventory
30,000
Total Current Assets
$ 54,200
Tangible Assets:
Land
$ 7,000
Equipment
$17,000
Less: Accumulated Depreciation—Equipment
(5,000)
12,000
Buildings
45,000
Less: Accumulated Depreciation—Buildings
(10,000)
35,000
54,000
Investments:
Investment in Bonds
8,000
Intangibles:
Trademarks
$ 5,000
Organization Costs
4,000
9,000
Total Assets
$125,200
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable
$15,000
Wages Payable
2,000
Current Taxes Payable
4,000
Total Current Liabilities
$ 21,000
Long-Term Debt:
Notes Payable—Long-Term
$10,000
Bonds Payable
$60,000
Less: Discount on Bonds Payable
(2,000)
58,000
Total Long-Term Debt
68,000
Owners' Equity:
Common Stock
31,200
Premium on Common Stock
3,000
Retained Earnings
12,000
Treasury Stock
(10,000)
36,200
Total Liabilities and Stockholders' Equity
$125,200
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