Question

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet. SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2018 ($ in 000s) Assets Current assets: Cash Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Patent $ 2,250 5,500 (1,400) 7,000 2,200 15,550 4,000 3,250 19,000 (5,200) $ ? Total assets Liabilities and shareholders' Equity Current liabilities: Accounts payable Note payable Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $ 6,200 6,000 1,100 5,000 18,300 6,500 400 $ ? ? ?
Can somebody help me fix this so it's all right?

Answer 1

SANDERSON MANUFACTURING COMPANY
Balance Sheet
At December 31, 2018
($ in 000)
Assets
Current assets
Cash		2250
Short-term investments		4000
Accounts receivable	5500
Allowance for uncollectible accounts	-1400
Net accounts receivable		4100
Inventory
Finished goods	7000
Raw materials and work in process	3250
Total inventory		10250
Prepaid expense		2200
Total current assets		22800
Property, plant, and equipment
Equipment	19000
Accumulated depreciation	-5200
Net property, plant, and equipment		14800
Intangible assets
Patent (net)	8600
Total intangible assets (46200 - 22800 - 14800)		8600
Total assets		46800
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	6200
Notes payable (current maturities of long-term debt)	1500
Interest payable	1500
Deferred revenue (5000/2)	2500
Total current liabilities		11,700
Long-term liabilities
Notes payable (long-term) (6000 - 1500)	4500
Deferred revenue (5000/2)	2500
Bonds payable	6500
Total long-term liabilities		13500
Total liabilities		25,200
Shareholders' equity
Common stock (21000 - 7700)	13300
Retained earnings (4400 + 2050 - 350)	7700
Total shareholders' equity*		21,000
Total liabilities and shareholders' equity		46,200

*Total liabilities = 120% x Shareholders' equity

Shareholders' equity = 25200/120% = 21,000

IF ANT DOUBT PLEASE MENTION IN COMMENT