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 | $ 1,250 | |
| Accounts receivable | 3,750 | |
| Allowance for uncollectible accounts | (600) | |
| Finished goods inventory | 7,000 | |
| Prepaid expenses | 3,400 | |
| Total current assets | 14,800 | |
| Long-term assets: | ||
| Investments | 3,000 | |
| Raw materials and work in process inventory | 3,900 | |
| Equipment | 19,500 | |
| Accumulated depreciationequipment | (9,000) | |
| Franchise | ?question mark | |
| Total assets | $ ?question mark | |
| Liabilities and Shareholders Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 7,200 | |
| Notes payable | 8,000 | |
| Interest payablenote | 400 | |
| Deferred revenue | 2,400 | |
| Total current liabilities | 18,000 | |
| Long-term liabilities: | ||
| Bonds payable | 7,000 | |
| Interest payablebonds | 200 | |
| Shareholders equity: | ||
| Common stock | $ ?question mark | |
| Retained earnings | ?question mark | ?question mark |
| Total liabilities and shareholders equity | ?question mark |
Additional information ($ in 000s):
- 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 $3,200. Net income for 2024 was $2,300, and $1,000 in cash dividends were declared and paid to shareholders.
- The investments represent treasury bills purchased in December 2024 that mature in January 2025. These are considered cash equivalents.
- Interest on both the notes and the bonds is payable annually.
- The notes payable account contains one note that is due in annual installments of $800 for each payment due.
- Deferred revenue will be recognized equally over the next 18 months.
- 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.
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