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. $ 1,750 4,500 (900) 6,500 1,700 13,550 SANDERSON MANUFACTURING COMPANY Balance Sheet At December 31, 2021 ($ in 000 s) 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 Patent (net) Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable (on notes) Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable (on bonds). 3,500 2,750 20,000 (4,700) ? $ ? $ 5,700 5,000 600 4,000 15, 300 6,000 700

Answer 1

Sanderson Manufacturing Company  

Balance Sheet  

At December 31, 2011  

($ in 000s, except share data)

Assets
Current assets
Cash		$1750
ST investments		$3500
Account receivables net (4500-900)		$3600
Inventories :
RM and WIP	$2750
FG	$6500	$9250
Prepaid expenses		$1700
Total CA		$19800
Property plant and equipment :
Equipment	$20,000
Less Depreciation	($4700)
Net property plant and equipment		$15300
Intangible assets:
Patents ($42000 - sum of other assets)		$6900
Total Assets		$42000
Liabilities and shareholders equity
Current liabilities
Accounts payable		$5700
Interest payable ($600+$700)		$1300
Unearned revenue ($4000/2=$2000)		$2000
Current maturities of LTD		$1250
Total CL		$10,250
LTL
Unearned revenue	$2000
Note payable (5000-1250)	$3750
Bonds payable	$6000	$11750
Total liabilities		$22,000
Shareholders equity
Common stock, 6,00,000 shares authorized
3,00,000 shares issued and outstanding
250,000 shares issued and outstanding	$13900
Retained earnings 5000+1800-700	$6100
Total Shareholders equity (22000/1.1)		$2000

Total liabilities and shareholders equity. $42000