The following is the balance sheet of Rubber Industries: RUBBER INDUSTRIES Balance Sheet For the Year Ended
Question:
The following is the balance sheet of Rubber Industries:
RUBBER INDUSTRIES
Balance Sheet
For the Year Ended December 31, 2010
Assets
Current assets:
Cash ………………………………………………… $ 50,000
Marketable equity securities ……………………….. 19,000
Accounts receivable, net …………………………… 60,000
Inventory …………………………………………… 30,000
Treasury stock ……………………………………… 20,000
Total current assets ………………………………… $ 179,000
Plant assets:
Land and buildings, net …………………………… 160,000
Investments:
Short-term U.S. notes ……………………………… 20,000
Other assets:
Supplies …………………………………………… 4,000
Total assets ………………………………………... $ 363,000
Liabilities and Stockholders’ Equity
Liabilities:
Bonds payable …………………………………….. $123,000
Accounts payable ………………………………….. 40,000
Wages payable …………………………………….. 10,000
Total liabilities …………………………………….. $173,000
Stockholders’ equity:
Common stock ($20 par, 20,000 shares
authorized, 6,000 shares outstanding) ……………. 120,000
Retained earnings …………………………………. 50,000
Redeemable preferred stock ………………………. 20,000
Total liabilities and stockholders’ equity ………….. $363,000
Required
Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any item criticized.
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...
Step by Step Answer:
a Heading date is wrong It should read December 31 2010 b Preferable to ...View the full answer
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
