lg farms corporation

Project Description:

assets
cash $271,500
investment securities $ 315,000
account receivable $270, 000
inventories $ 501,000
total current assets $ 1,357,500
property, plant and equipment $ 1,452,000
total assets $ 2,809,500
liablities and stockholder’s equity
accounts payable $ 342,420
estimated loss from future crop failures $ 360,000
salaries payable $ 150, 000
total current liablities $ 852,420
10% bond payable (due in 10 years) $ 525,000
capital stock $ 450, 000
retained earnings $ 982,080
total liabilities and stockholder equity’s $ 2,809,500

the control found additional information as followed:
1. cash is held in checking account and a saving account with balances of $69, 450 and $ 202,050, respectively. the cash in saving will be restricted and used to support operations in the event of crop failures.
2. a loan to the president for $ 180,000 that is to be repaid in quarterly installment of $15,000 is included in accounts receivable. other accounts receivable considered to be 95% collectible.
3. inventories includes :
finished product $ 390,000
supplies $ 19,500
storage building net of $ 30,480 accumulated depreciation $ 91,500
total inventories $ 501,000
4. pp&e includes 5 tractor purchased near end of year 2007 for $360, 000. the company borrowed a 5-year loan $ 300,000 to buy the tractor. the balances of pp&e consists of land that was purchased for $1,200,000 and building that were purchased for $255,000 (net of accumulated depreciation of $ 63,000)
5. included in account payable are $105,000 of advances from customers for delivery of goods in august of next year.
6. the company has 90,000 share of $5 par common stock issued and outstanding. the common stock was original sold for $7 per share, and the premium was included in retained earnings.
7. after reading a us professional report the president believe that next year will be a bad crop year due to heavy hailstorm and estimate the company would lose about $360,000. an appropriation of retained earnings has been made this month.

required:
using the balance sheet and the additional information, prepare a corrected classified balance sheet for lg farm corporations as of december 31, 2007
Skills Required:
Project Stats:

Price Type: Negotiable

Completed
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