Question

Presented below is balance sheet information regarding Sargent Corporation as of December 31, 2020.

1. Current assets: cash and cash equivalents, $150,000; accounts receivable, $170,000; allowance for doubtful accounts, $10,000; inventories, $200,000 cost, $180,000, net realizable value.
2. Fixed assets: buildings, $1,040,000 less $360,000 accumulated depreciation; equipment, $450,000 less $180,000 accumulated depreciation; land $500,000; land held for future use, $270,000.
3. Current liabilities: accounts payable, $150,000; notes payable, $80,000; income taxes payable, $40,000; unearned rent revenue, $5,000.
4. Other liabilities: long-term notes payable issued at face value, $120,000; 7% bonds payable due 2028, $1,000,000; discount on bonds payable, $40,000; deferred income tax liability, $6,000, based on an effective tax rate of 20%.
5. Investments: cash surrender value of a life insurance contract, $40,000; investments in common stock for short-term trading, $88,000 cost, $80,000 fair value; investments in short-term available-for-sale debt securities, cost, $240,000, fair value, $270,000; bond sinking fund $250,000.
6. Intangible assets: trademarks, $165,000; goodwill, $100,000.
7. Stockholders’ equity: preferred stock, no par value, authorized 200,000 shares, issued 170,000 shares for $510,000; common stock, $1 par value, authorized 400,000 shares, issued 100,000 shares at $9per share; retained earnings (after closing entries), $320,000; accumulated other comprehensive income, $24,000.

Instructions: Prepare a classified balance sheet for Sargent Corporation

Answer 1

Answer Balance Sheet Mulance sheet of the organisation consists the assets 1996 os equity section of the organisation. Balance sheet is the mirror the organisations operations. Balance Sheel shows fin 4999) po 57tion e tysness. A strong balance sheet of the entity interacks iquestos Invest in the organisation. Balance Sheet is basel on the equahon - Assets = Liabilities & Equity BUFFALO CORPORATION Balance sheet as on December 31,2020 of: Amb.ct2 Amt. ($2 Partiul lors MmE.C#) Assets Current Assets Cash Investment in Equity common Stock (Trading) Investment in Debt'securities cat faji uglue) Account Receivables 170000 - Allowance fou Doubtful Debts (10000) Inventory (lower of firo Cest ou Mavhet 150000 80000 276000 160000 180000 "O price) Total Charent Assets 840000 250000 Long term Investment Investment in Equity common stock (long trong Bond sinking Fund Cash surrendev value of Life Insurance land held for fytyre use Total Long term Investments 40000 170000 560000 Property Plant an Equipments 500000 lans

1040000 1360030) 680000 450000 1180000)| 270000 1450.000 Building -> Accimyleted Deprecision -- Buildings Equipment -Accumulated Depreciation, Total Property plant and Equipment Intangible sueto Trademark Goodwil) Toby) Intajille Murets Total Assets 165000 109000 | 265000 3115000 10000 80000 40000 5000 NON 275000 Liqbilities and stockholders Equibus Liquilliti wa Current liabilities Accounts Payable Notes Payable Income Tx Payable vnegined Rent Revenue Totyl current liabilities long term Liquisitio 7/ Notes Payable Bonus Payable 1000000 - Discount on Band's Payable |(40000) | 960000 Defe-к/ Lyot Tax 149 (1) Couo Total long term liq6lities Total Liabilities 120000 1 086009 1361000

519000 Stoelholder's Egylby Preferred stock (200000 shares" authorized of 1. which 170000 shares issued) Common stock (400000 shares authoriel of which teoooo shares issued at 9.00 pg value is $1.00) 100000 800,000 Port-in capitel Excess of PqN common stall Retained Earnings Accumulquer other comprehensive Income Total Stockhollerse Equity 323000 24000 1754000 Total Libilities and stockholder's Equity 2115000