The following data, presented in alphabetical order, are taken from the records of Redlands Corporation. Accounts payable.....................$ 375,000 Accounts receivable....................135,000 Accumulated depreciationbuildings............270,000 Accumulated depreciationequipment............80,000 Allowance for doubtful accounts................10,000 Bonds payable (10%, due 2022)...............600,000 Buildings........................1,350,000 Cash.........................210,000 Common stock ($5 par value; 500,000 shares authorized, 440,000 shares issued).................2,200,000 Discount on bonds payable..................30,000 Dividends payable....................75,000 Equipment........................415,000 Goodwill.......................300,000 Income taxes payable..................180,000 Inventory.........................255,000 Investment in

Chapter 16, Problem Set B #6

The following data, presented in alphabetical order, are taken from the records of

Redlands Corporation.

Accounts payable.....................$ 375,000

Accounts receivable....................135,000

Accumulated depreciation—buildings............270,000

Accumulated depreciation—equipment............80,000

Allowance for doubtful accounts................10,000

Bonds payable (10%, due 2022)...............600,000

Buildings........................1,350,000

Cash.........................210,000

Common stock ($5 par value; 500,000 shares authorized,

440,000 shares issued).................2,200,000

Discount on bonds payable..................30,000

Dividends payable....................75,000

Equipment........................415,000

Goodwill.......................300,000

Income taxes payable..................180,000

Inventory.........................255,000

Investment in Bonita Inc. stock (30% ownership), at equity...900,000

Land..........................780,000

Notes payable (due 2013).................110,000

Paid-in capital in excess of par—common stock.........300,000

Prepaid insurance....................25,000

Retained earnings.....................480,000

Short-term investments, at fair value (and cost)..........280,000

Instructions

Prepare a classified balance sheet at December 31, 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...