Question

Exercise 5-5 Your answer is partially correct. Try again. Nash Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. $242,500 352,500 413,500 152,500 NASH COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (trading) at cost (fair value $132,500) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable 582,500 172,500 187,500 92,500 102,500 24,500 147,500 137,500 94,500 61,500

Answer 1

Answer Page No 0 Revised balance sheets Particular Amount Amount Amount Assets Coorrent assets Cash $2421500 Torading securities - at fain valve $132,500 Accounts receivable $382000 Allowance for doubtful accounticek 29500) $352,500 Inventories, eet loven of average coat our $413,500 Prepaid experses $24,500 Total current assets $1165500 hong term investments hand held for future use $184,500 Cash surrender value of life insurance $102,500 $290,000 Property, plant & equipment Building $755000 Accumulated depreciation building C$172500) 4562,500 Office equipment $ 290,000 Accumulated depocciation - equipment(114500) #142,500 $755000

Page - No ® Particular Amount Amount Amount Intangible assets Goodwill 698500 Total assets $2303000 Liabilities & stockholder'a cquiding Current liabilities Accounts payable $147500 Notes payable C due next year) $137500 Rent payable $ 61,500 Total current liabilities $346500 Long ferm Liabilities Bonds payable $572500 Premium on bonds payable $ 65,500 $578000 Persion obligation) $94500 $672500 Stockholder's equily Common stoch, $i par , authorized 400 pco shines $302500 inued 302500 shares Additional paid in crepital : $172500 $475000 Retained earnings $809000 Total stockholderts equity Total liabilities & stockholder's equila $1284000 $2303000

Page No ③ Retained earnings = 2303000 --( 346500 + 672500) – 41:5000 = 2303000 -- 1019000 - 445000 = $ 809000