The following information is presented.

The current assets section includes cash $$150,000,$ accounts receivable $$170,000$ less $$10,000$ for

allowance for doubtful accounts, inventories $$180,000,$ and unearned rent revenue $$5,000.$ Inventory

is stated on the lower$-$of$-$FIFO$-$cost$-$or$-$net realizable value.

The investments section includes the cash surrender value of a life insurance contract $$40,000$;

investments in common stock, short$-$term $$80,000$ and long$-$term $$270,000$; and bond sinking fund

$$250,000.$ The cost and fair value of investments in common stock are the same.

Property, plant, and equipment includes buildings $$1,040,000$ less accumulated depreciation

$$360,000,$ equipment $$450,000$ less accumulated depreciation $$180,000,$ land $$500,000,$ and land

held for future use $$270,000.$

Intangible assets include a franchise $$165,000,$ goodwill $$100,000,$ and discount on bonds payable

$$40,000.$

Current liabilities include accounts payable $$140,000,$ notes payable$-$short$-$term $$80,000$ and long$-$

term $$120,000,$ and income taxes payable $$40,000.$

Long$-$term liabilities are composed solely of $7\%$ bonds payable due $2033.$

Stockholders' equity has preferred stock, no par value, authorized $200,000$ shares, issued $70,000$ shares

for $$450,000$; and common stock, $$1$ par value, authorized $400,000$ shares, issued $100,000$ shares at an

average price of $$10.$ In addition, the corporation has retained earnings of $$320,000.$

Instructions

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as

affected by the information given above.