The Brandt Company presents the following December 31, 2010 balance sheet: The following information is also available:

Question:

The Brandt Company presents the following December 31, 2010 balance sheet:

align="center">The Brandt Company presents the following December 31, 2010 balance

The following information is also available:
1. Current assets include cash, $3,800; accounts receivable, $18,500; notes receivable
(maturity date July 1, 2012), $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 2011 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2019 maturity date.
3. Property 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, 2011), $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, 2021), $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, 2011), $20,000.
8. Contributed capital includes common stock ($5 par) $11,000 and preferred stock ($100 par) $6,000.
9. Unrealized capital includes premium on bonds payable, $4,300; premium on preferred stock, $2,400; premium on common stock, $14,700; and unrealized increase in value of securities available for sale, $1,100.
10. Retained earnings includes 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 preceding information, prepare a properly classified December 31, 2010 balance sheet for the BrandtCompany.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

Question Posted: