The following balance sheet for the Hubbard Corporation was prepared by the company:
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained earnings.
2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year.
4. Inventories are recorded at current resale value. The original cost of the inventories is $160,000.

Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2011.

  • CreatedJune 24, 2013
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