As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant at the end of 2016.

Henderson Manufacturing Company
Balance Sheet
?
($ in 000s)
Assets
Current assets:
Cash		$ 1,600
Accounts receivable		4,300
Allowance for uncollectible accounts		(500)
Finished goods inventory		5,000
Prepaid expenses		2,400
Total current assets		12,800
Noncurrent assets:
Investments		2,000
Raw materials and work in process inventory		3,200
Equipment		18,000
Accumulated depreciation–equipment		(8,000)
Franchise		?
Total assets		$      ?
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$6,200
Note payable		8,000
Interest payable–note		200
Deferred revenue		2,400
Total current liabilities		16,800
Long-term liabilities:
Bonds payable		7,000
Interest payable–bonds		200
Shareholders’ equity:
Common stock, $2. Par; 7,500 shares authorized, 4,000 shares outstanding	10,000
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 1.5. That is, total liabilities are 150% of total shareholders' equity. Retained earnings at the beginning of the year was $4,300. Net income for 2016 was $2,500, and $800 in cash dividends were declared and paid to shareholders.

2. The investments represent treasury bills purchased in December 2016 that mature in January 2017. These are considered cash equivalents.

3. Interest on both the note and the bonds is payable annually.

4. The note payable is due in annual installments of $800 each.

5. Deferred revenue will be earned equally over the next 18 months.

6. Prepaid Expenses will cover 2 years.

7. The common stock represents 500,000 shares of no par stock authorized, 300,000 shares issued and outstanding.

Required:

Prior to preparing the corrected classified balance, many account balances and other items need to be restated. On a separate answer sheet, enter the following:

Heading dateline

Cash and cash equivalents balance

Interest Payable balance

Total current liabilities

How will the note payable be classified on the revised balance sheet?.

Will this balance sheet report any “Other Assets”?

Deferred revenue is correctly classified as a Current liability.

Retained earnings on this balance sheet will be stated at what amount?

How many shares of stock have been issued?

Is this company holding any shares of Treasury Stock? Explain your answer.