Question: As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. Henderson Manufacturing Company Balance Sheet
As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. Henderson Manufacturing Company Balance Sheet December 31, 2024 ($ in 000s) Assets Current assets: Cash $ 1, 850 Accounts receivable 4, 350 Allowance for uncollectible accounts (600) Finished goods inventory 6, 100 Prepaid expenses 4, 000 Total current assets 15, 700 Long-term assets: Investments 3, 600 Raw materials and work in process inventory 4, 500 Equipment 22, 500 Accumulated depreciation-equipment (9, 600) Franchise Total assets $ ? Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 7, 800 Notes payable 14, 000 Interest payable-note 300 Deferred revenue 2, 400 Total current liabilities 24, 500 Long-term liabilities: Bonds payable 13, 000 Interest payable-bonds 500 Shareholders' equity: Common stock $ ? Retained earnings Total liabilities and shareholders' equity ? Additional information ($ in 000s): 1. Certain records that included the account balances for the franchise and shareholders' equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.6. That is, total liabilities are 160% of total shareholders' equity. Retained earnings at the beginning of the year was $3,800. Net income for 2024 was $2,900, and $900 in cash dividends were declared and paid to shareholders. 2. The investments represent treasury bills purchased in December 2024 that mature in January 2025. These are considered cash equivalents. 3. Interest on both the notes and the bonds is payable annually.4. The notes payable account contains one note that is due in annual installments of $1,400 for each payment due. 5. Deferred revenue will be recognized equally over the next 18 months. 6. The common stock represents 500,000 shares of no par stock authorized, of which 300,000 shares are issued and outstanding Required: Prepare a complete, corrected, classified balance sheet. Note: Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars. HENDERSON MANUFACTURING COMPANY Balance Sheet December 31, 2024 ($ in 000s, except share data) Assets Current assets: ices Cash and cash equivalents Inventory: 0 0 Total current assets Property, plant, and equipment: 0 Net property, plant, and equipment Intangibles: $ 0 Total assets Liabilities and Shareholders' Equity Current liabilities:IVial WUIIGILL aDOGIO Property, plant, and equipment: Net property, plant, and equipment 10 Intangibles: Total assets $ Liabilities and Shareholders' Equity Current liabilities: Total current liabilities 0 Long-term liabilities: O Total liabilities 0 Shareholders' equity: Total shareholders' equity Total liabilities and shareholders' equity $ 0
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