Question: Please help me solve! As controller for Henderson, you are attempting to reconstruct and revise the following balance sheet prepared by a staff accountant. Henderson

Please help me solve!

Please help me solve! As controller for Henderson, you are attempting to

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 000) Assets Current assets: Cash $ 1,550 Accounts receivable 4,050 Allowance for uncollectible (300) accounts 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 4,200 inventory Equipment 21,000 Accumulated depreciation- (9,300) equipment Franchise Total assets Liabilities 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 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 $3,500. Net income for 2021 was $2,600, 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 $1,100 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!