Question

Med balance sheet in good form. The notes above am P5.5 (LO2) Groupwork (Balance Sheet Adjustment and Preparation balance sheet of Sargent Corporation for the current year, 2020. ce for info on) Present Current assets Investments Property, plant, and equipment Intangible assets Sargent Corporation Balance Sheet December 31, 2020 $ 485,000 Current liabilities 640,000 Long-term liabilities 1,720,000 Stockholders' equity 305,000 $ 18 TI $3,150,000 The following information is presented. 1. The current assets section includes cash $150,000, accounts receivable $170,000 less allowance for doubtful accounts, inventories $180,000, and unearned rent revenue $5.00 is stated on the lower-of-FIFO-cost-or-net realizable value. 2. The investments section includes the cash surrender value of a life insurance contracts ments in common stock, short-term $80,000 and long-term $270,000, and bond sinking funds The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment includes buildings $1,040,000 less accumulated depois $360,000, equipment $450,000 less accumulated depreciation $180,000, land $500,000 held for future use $270,000. 4. Intangible assets include a franchise $165,000, goodwill $100,000, and discount on bonds $40,000. 5. Current liabilities include accounts payable $140,000, notes payable-short-term son term $120,000, and income taxes payable $40,000. 6. Long-term liabilities are composed solely of 7% bonds payable due 2028. 7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, shares for $450,000; and common stock, $1.00 par value, authorized 400,000 shares shares at an average price of $10. In addition, the corporation has retained earning O shares, shares, and warnings at Instructions Prepare a balance sheet in good form, adjusting the amounts in each balance snice fected by the information given above. e sheet classification alance Sheet) Le P5.6 (LO 2, 3) Excel (Preparation of a Statement of Cash Flows and a Balance Inc. had the following balance sheet at December 31, 2019. Lansbury Inc. Balance Sheet

Answer 1

Sargent Corporation
Balance Sheet December 2020
Current Assets
Cash		150000
Trading Investments (Fair Value)		80000
Accounts Receivable	170000
Less Allowance for Doubtful Accounts	-10000	160000
Inventory, at lower of cost (with the use of FIFO or NRV)		180000
Total Current Assets			570000
Long Term Investments
Investments in Common Stock (fair value)		270000
Bond Sinking Fund		250000
Cash Surrender Value of Life Insurance		40000
Land held for Future Use		270000
Total Long Term Investments			830000
Property, Plant and Equipment
Land		500000
Buildings	1040000
Less Accumulated Depreciation Building	-360000	680000
Equipment	450000
Less Accumulated Depreciation Equipment	-180000	270000
Total Property, Plant and Equipment			1450000
Intangible Assets
Franchises		165000
Goodwill		100000
Total Intangible Assets			265000
Total Assets			3115000
Liabilities and Stockholder's Equity
Current Liabilities
Accounts Payable		140000
Notes Payable		80000
Taxes Payable		40000
Unearned Revenue		5000
Total Current Liabilities			265000
Long Term Liabilities
Notes Payable		120000
7% Bonds Payable	1000000
Less Discount on Bonds Payable	-40000	960000
Total Long Term Liabilities			1080000
Total Liabilities			1345000
Stockholder's Equity
Capital Stock
Preferred Stock, No Par Value
200000 Shares Authorized
70000 Issued and Outstanding	450000
Common Stock, $1 Par Value
400000 Share Authorized
100000 Issued and Outstanding	100000
Paid in Capital in Excess of Par on Common Stock	900000
Total Paid in Capital		1450000
Retained Earnings		320000
Total Stockholder's Equity			1770000
Total Liabilities and Stockholder's Equity			3115000