Question

Excel Homework Problem
Due Date: September 14, 2020 by 11:59 pm

An inexperienced accounting intern prepared the following December 31, 2020 Balance Sheet for Scan House, Inc.

Scan House, Inc.
Collection of Balances for Year ended 12/31/20
Other assets	13,600		Long-term liabilities	24,100
Property, plant, and equipment	123,500		Current liabilities	66,600
Long-term investments	13,600		Contributed capital	17,000
Intangible asset	7,700		Unrealized capital	22,500
Current assets	44,300		Retained earnings	72,500
Total assets	202,700		Total equities	202,700

The following information is also available:

1. Current assets include cash, $3,800; accounts receivable, $18,500; notes receivable (maturity date July 1, 2025), $10,000; and land, $12,000.

2. Long-term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2021 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2023, maturity date.

3. Property, plant, and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600.

4. Intangible assets include patents that cost $8,200 (and on which $2,300 amortization has accumulated) and treasury stock that cost $1,800.

5. Other assets include prepaid insurance (which expires on November 30, 2021), $2,900; sinking fund for bond retirement, $7,000; and trademarks that cost $3,700 and are not impaired.

6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2025), $40,000; and accrued income taxes payable, $7,200.

7. Long-term liabilities include accrued wages, $4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2021), $20,000.

8. Contributed capital includes common stock ($5 par), $11,000, authorized 20,000, issued 2,200, outstanding 2,150; and preferred stock ($100 par), $6,000, authorized 100, issued and outstanding 60.

9. Unrealized capital includes premium on bonds payable, $4,300; additional paid-in capital on preferred stock, $2,400, and additional paid-in capital on common stock, $15,800.

10. Retained earnings include unrestricted retained earnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and $13,000, respectively.

Required:

Based on the above information, prepare a properly classified December 31, 2020, balance sheet for Scan House, Inc.

Answer 1

Here is a snapshot of the Balance Sheet:

19400 7200 4100 30700 20000 40000 4300 64300 Current Assets: Current Investments Treasury Stock Accounts Receivable (-) Allowance for doubful accounts Inventory Cash Prepaid Insurance Total Current Assets Non-Current Assets: Land Building (-) Accumulated Amortization Equipment (-) Accumulated Amortization Trademarks Patents (-) Accumulated Amortization Investment in Dray Company Bonds Sinking fund for bond retirement Notes Receivable Total Non-Current Assets Current Liabilities: 4600 Accounts Payable 1800 Accrued Income Taxes Payable 18500 Accured Wages -700 Total Current Liabilities 30500 3800 Long Term Liabilities: 2900 Mortgage Payable 61400 Bonds Payable Premium on Bonds Payable 12000 Total Long Term Liabilities 63400 -21000 Equity Capital: 29600 Common Stock ($5 par) - 13000 Additional Paid up Capital on common stock 3700 Preferred Stock ($100 par) 8200 Additional Paid up Capital on preferred stock -2300 Unrestricted Retained Earnings 9000 Total Equity Capital 7000 10000 106600 11000 15800 6000 2400 37800 73000 Total Assets 168000 Total Liabilities 168000

I hope the excel worksheet is self explanatory. I've uploaded it here for you:
https://drive.google.com/file/d/15RgsNeqkE2pq9hbvbD6YBYexoUr5BQwi/view?usp=sharing