Presented below is the balance sheet of Kishwaukee Corporation as of December 31, 2014. KISHWAUKEE CORPORATION BALANCE
Question:
Presented below is the balance sheet of Kishwaukee Corporation as of December 31, 2014.
KISHWAUKEE CORPORATION | ||
Assets | ||
Goodwill (Note 2) | $ 124,450 | |
Buildings (Note 1) | 1,640,000 | |
Inventory | 316,550 | |
Land | 950,000 | |
Accounts receivable | 174,450 | |
Treasury stock (50,000 shares) | 91,450 | |
Cash on hand | 180,350 | |
Assets allocated to trustee for plant expansion | ||
Cash in bank | 74,450 | |
Debt investments (held-to-maturity) | 142,450 | |
$3,694,150 | ||
Equities | ||
Notes payable (Note 3) | $ 604,450 | |
Common stock, authorized and issued, 1,000,000 shares, no par | 1,154,450 | |
Retained earnings | 807,450 | |
Noncontrolling interest | 59,450 | |
Appreciation capital (Note 1) | 574,450 | |
Income tax payable | 79,450 | |
Reserve for depreciation recorded to date on the building | 414,450 | |
$3,694,150 |
Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $574,450. Depreciation has been recorded based on cost.
Note 2: Goodwill in the amount of $124,450 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $124,450 was credited to Retained Earnings.
Note 3: Notes payable are long-term except for the current installment due of $100,000.
Prepare a corrected classified balance sheet in good form. The notes above are for information only.
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield