The following balance sheet for the Hubbard Corporation was prepared by the company: Additional Information:1. The buildings,
Question:
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. The investment in equity securities account consists 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. Inventory is recorded at current resale value. The original cost of the inventory is $160,000.
Required:Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. Include headings for each classification, as well as titles for each classification?s subtotal. An example of a classified balance sheet can be found in the Concept Review Exercise at the end of Part A of this chapter.
StocksStocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas