Statement of Financial position Adjustment and Preparation Presented below is the statement of financial position of Sargent

Question:

Statement of Financial position Adjustment and Preparation Presented below is the statement of financial position of Sargent Corporation for the current year. 2010

SARGENT CORPORATION STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2010 Equity Investments Property, plant. and equipment

The following information is presented.
1. The current assets section includes: cash $150,000, accounts receivable $170,000 less $10,000 for allowance for doubtful accounts, inventories $180,000, and unearned revenue $5,000. Inventories are stated on the lower of FIFO cost or net realizable value.
2. The investments section includes land held for speculation $40,000; investments in ordinary shares. short-term (trading) $80,000 and long-term (non-trading) $270,000; and bond sinking fund $250,000. The cost and fair value of investments in ordinary share are the same.
3. Property, plant, and equipment includes, buildings $1,040,000 less accumulated depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000; land $500,000, and land held for future use $270,000
4. Intangible assets include a franchise $165.000 and goodwill $100.000.
5. Current liabilities include: accounts payable $140,000; notes payable€”short-term $80,000 and long-term $120.000; and taxes payable $40,000.
6. Non-current liabilities are composed solely of 7% bonds payable due 2018.
7. Equity has share capital-preference. $5 par value, authorized 200,000 shares, issued 90,000 shares for $450,000; and share capital€”ordinary $1 par value, authorized 400,000 shares, issued 100,000 shares at an average price of $10. In addition, the corporation has retained earning of $320,000.
Instructions
Prepare a statement of financial position in good form, adjusting the amounts in each statement of financial position classification as affected by the information givenabove.

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