Question: I've gotten almost everything from this problem but can't figure out the common stock! Not sure if im missing something in the above sections (like
I've gotten almost everything from this problem but can't figure out the common stock! Not sure if im missing something in the above sections (like completely missing so it doesn't even tell me its wrong) or if im just doing the calculations wrong? Please explain out the whole problem, I want to make sure I understand this information!



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 At December 31, 2021 ($ in 000s) Assets Current assets: Cash $1,600 4,200 Accounts receivable Allowance for uncollectible accounts Finished goods inventory Prepaid expenses Total current assets Long-term assets: Investments Raw materials and work in process inventory Equipment Accumulated depreciation-equipment Franchise Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Interest payable-note Deferred revenue Total current liabilities Long-term liabilities: Bonds payable Interest payable-bonds Shareholders' equity: Common stock Retained earnings Total liabilities and shareholders' equity $? ? (700) 6,000 2,900 14,000 2,500 3,400 17,000 (8,500) ? $ ? $ 6,700 13,000 300 3,000 23,000 12,000 700 ? ? 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 1.7. That is, total liabilities are 170% of total shareholders' equity. Retained earnings at the beginning of the year was $4,800. Net income for 2021 was $3,000, and $1,300 in cash dividends were declared and paid to shareholders. 2. The investments represent treasury bills purchased in December 2021 that mature in January 2022. 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 $1,300 for each payment due. 5. Deferred revenue will be recognized equally over the next 18 months. 6. The common stock represents 500,000 shares of no par stock authorized, of which 300,000 shares are issued and outstanding. Required: Prepare a complete, corrected, classified balance sheet. (Do not round your intermediate calculations. Enter your answers in the order of their liquidity. Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.) Current assets: Cash and cash equivalents Accounts receivable (net) Inventory: Finished goods Raw materials and work in process Prepaid expenses Total current assets Property, plant, and equipment: Equipment Accumulated depreciation Net property, plant, and equipment Franchise (net) Intangibles: Henderson Manufacturing Company Balance Sheet At December 31, 2021 ($ in 000s) Assets Total assets $ 6,000 3,400 17,000 (8,500) $ GA $ 4,100 3,500 9,400 2,900 19,900 8,500 28,400 Current liabilities: Liabilities and Shareholders' Equity $ Accounts payable Interest payable Current maturities of long-term debt Deferred revenue Total current liabilities Long-term liabilities: Deferred revenue Notes payable Bo payable Total liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 1,000 11,700 12,000 17,300 6,500 $ $ 6,700 1,000 1,300 2,000 11,000 24,700 35,700 23,800 59,500
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