Uhura Company

Topics: Balance sheet, Generally Accepted Accounting Principles, Liability Pages: 4 (798 words) Published: July 20, 2007
E5-5 (Preparation of a Corrected Balance Sheet)Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

InstructionsPrepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.

Uhura CompanyBalance Sheet31-Dec-07AssetsCurrent assetsCash $230,000Trading securities—at fair value $120,000Accounts receivable $357,000Less: Allowance for doubtfulaccounts $17,000 $340,000Inventories, at lower of averagecost or market $401,000Prepaid expenses 12,000Total current assets $1,103,000Long-term investmentsLand held for future use $175,000Cash surrender value of lifeinsurance 90,000$265,000Property, plant, and equipmentBuilding $730,000Less: Accum. depr.—building 160,000$570,000Office equipment $265,000Less: Accum. depr.—officeequipment 105,000160,000730,000Intangible assetsGoodwill 80,000Total assets $2,178,000Liabilities and Stockholders EquityCurrent liabilitiesAccounts payable $135,000Notes payable (due next year) 125,000Rent payable 49,000Total current liabilities $309,000Long-term liabilitiesBonds payable $500,000Add: Premium on bonds payable 53,000$553,000Pension obligation 82,000635,000Total liabilities 944,000Stockholders equityCommon stock, $1 par, authorized400,000 shares, issued 290,000shares 290,000Additional paid-in capital 160,000450,000Retained earnings 784000Total stockholders equity 1,234,000Total liabilities and stock-holders equity $2,178,000E5-12 (Preparation of a Balance SheetPresented below is the trial balance of John Nalezny Corporation at December 31, 2007.

InstructionsPrepare a balance sheet at December 31, 2007, for John Nalezny Corporation. Ignore income taxes.

John Nalezny...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Company History Diamond Power InfrastructureThe Company Essay
  • Holding Company & Subsidiary Company.docx Essay
  • Company Law Essay
  • Iks Company Essay
  • Newell Company Essay
  • An example of a business plan for a hypothetical company Research Paper
  • The Newell Company Essay
  • Companies act Essay

Become a StudyMode Member

Sign Up - It's Free