Item$18$

$11\mathrm{.}6$points

Time Remaining $1$ hour $1$ minute $29$ seconds

$01$:$01$:$29$

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Item $18$

Time Remaining $1$ hour $1$ minute $29$ seconds

$01$:$01$:$29$

TB Problem $3-124($Algo$)$ As controller for Henderson, you...

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

Henderson Manufacturing CompanyBalance SheetDecember $31,2024($$ in $000$s$)$Assets$$Current assets:$$Cash$$$ $1,550$Accounts receivable$4,050$Allowance for uncollectible accounts$(300)$Finished goods inventory$5,500$Prepaid expenses$3,700$Total current assets$14,500$Long$-$term assets:$$Investments$3,300$Raw materials and work in process inventory$4,200$Equipment$21,000$Accumulated depreciation$$equipment$(9,300)$Franchise$?$question markTotal assets$$$ $?$question markLiabilities and Shareholders$$ Equity$$Current liabilities:$$Accounts payable$$$ $7,500$Notes payable$11,000$Interest payable$$note$300$Deferred revenue$2,100$Total current liabilities$20,900$Long$-$term liabilities:$$Bonds payable$10,000$Interest payable$$bonds$300$Shareholders$$ equity:$$Common stock$ $?$question mark$$Retained earnings?question mark?question markTotal liabilities and shareholders$$ equity$?$question mark

Additional information $($$ in $000$s$)$:

Certain records that included the account balances for the franchise and shareholders$$ equity items were lost. However, a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of $1\mathrm{.}5.$ That is$,$ total liabilities are $150\%$ of total shareholders$$ equity. Retained earnings at the beginning of the year was $$3,500.$ Net income for $2024$ was $$2,600,$ and $$1,300$ 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 $$1,100$ 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.