BACK NEXT Problem 5-5 Your answer is partially correct. Try again. Presented below is the balance sheet of Sargent Corporation for the current year, 2017 BLOSSOM CORPORATION BALANCE SHEET DECEMBER 31, 2017 Current assets $ 485,290 Current liabilities $ 381,290 Investments 641,290 Long-term liabilities 1,001,290 Property, plant, and equipment 1,721,290 Stockholders' equity 1,771,290 Intangible assets 305,000 $3,153,870 $3,153,870 2 The following information is presented. 1. The current assets section includes cash $151,290, accounts receivable $171,290 less $11,290 for allowance for doubtful accounts, inventories $181,290, and unearned rent revenue 56,290. Inventory is stated on the lower-of-FIFO-cost-or-market. 2. The investments section includes the cash surrender value of a life insurance contract $41,290; investments in common stock, short term $81,290 and long-term $271,290; and hond sinking fund $247,420. The cost and fair value of investments in common stock are the same. 3. Property, plant, and equipment indudes buildings $1,041,290 less accumulated depreciation $361,290, equipment $451,290 less accumulated depreciation $181,290, land $501.290, and land held for future use $270,000 4 Intangible assets include a franchise $166,290, goodwill $101,200, and discount on bonds payable $37.420. Current abilities include accounts payable $141,290, notes payable short term $1,290 and long term $121,290, and income taxes payable $37,420. Long-term abilities are composed solely of 7% bonds payable due 2025. 6. 7 Star 1. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 71,290 shares for $427,740, and common stock, $1.00 par value, authorized 400,000 shares, issued 101,290 shares at an average price of $10. In addition, the corporation has retained earnings of $330,650. Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.) BLOSSOM CORPORATION Balance Sheet December 31, 2017 Assets Current Assets Cash 151,290 Equity Investments 81,290 Accounts Receivable 171,290 11,290 160,000 Allowance for Doubtful Accounts Inventory 181,290 Total Current Assets 573,870 Long-term Investments Equity Investments 271,290 Bond Sinking Fund 247,420 Cash Surrender Value of Life Insurance 41,290 Land Held for Future Use 270,000 830,000 Property, plant and Equipment Land 501,290 Buildings 1,041,200 Less Accumulated Depreciation Building 361,290 600,000 Equipment 451,290 Less Accumulated Depreciation Equipment 181,290 818,710 1.451,290 REGION Intangible Assets Franchises 166,290 Goodwill 101,290 267,580 Total Assets 3,122,740 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 141,290 Notes Payable 81,290 Income Tax Payable 37,420 Unearned Rent Revenue 6,290 Total Current abilities 266,290 Long-term Uabilities CALCULATOR PRINTER VERSION Notes Payable 121,290 Bonds Payable 1,001,290 Less 37,420 Discount on Bonds Payable 1,005,160 1,042,580 Total Liabilities 1,308,870 Stockholders' Equity Capital Stock Preferred Stock 427,740 Common Stock 101,290 Pald.in Capital in excess of Par. Common Stock 911,610 1,440,640 Retained Earnings 330,650 Total stockholders' Equity 1,771,290 Total Liabilities and Stockholders' Equity 3,122,740 CERVESPA