Question

Minett Boatbuilders Company prepared the following balance sheet:
Your analysis of these accounts reveals the following information:
1. Working capital consists of:
Land......................... $12,000
Accounts due from customers .............. 18,000
Accounts due to suppliers................. (22,700)
Inventories, including office supplies of $3,500....... 35,500
Income taxes owed .................. (16,400)
Wages owed ...................... (3,600)
Note owed to bank (due December 31, 2018)........ (17,000)
Securities held as a short-term investment 17,000....... $22,800
2. Other assets include:
Cash........................ $12,300
Prepaid insurance .................... 2,400
Buildings and equipment ................. 100,000
Discount on bonds payable ............... 3,000
Investment in available-for-sale stock ........... 29,000
Treasury stock (at cost) .................. 5,300
$152,000
3. Noncurrent liabilities consist of:
Bonds payable (due 2023) ................. $33,000
Allowance for doubtful accounts ............. 1,400
Additional paid-in capital on preferred stock ........ 2,600
Common stock, $5 par ................. 25,000
$62,000
4. Shareholders’ equity includes:
Accumulated depreciation: Buildings and equipment..... $40,000
Preferred stock, $100 par ................ 12,000
Additional paid-in capital on common stock ......... 15,600
Retained earnings .................... 40,000
Accrued pension cost .................. 6,500
Unrealized decrease in value of available-for-sale securities .. (1,300)
$112,800
Required:
Based on your analysis, prepare a properly classified December 31, 2016, balance sheet for Minett Boatbuilders.


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  • CreatedOctober 05, 2015
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