Balance Sheet Adjustment and Preparation Presented below is the balance sheet of Sargent Corporation for the current year,
Sargent Corporation Balance Sheet December
Current assets Investments
Property, plant, and equipment Intangible assets
$ Current liabilities Longterm liabilities
$
The following information is presented. The current assets section includes cash $ accounts receivable $ less $ for allowance for doubtful accounts, inventories $ and unearned rent revenue $ Inventory is stated on the lowerofFIFOcostornet realizable value.
The investments section includes the cash surrender value of a life insurance contract $; investments in common stock, shortterm $ and longterm $; and bond sinking fund $ The cost and fair value of investments in common stock are the same.
Property, plant, and equipment includes buildings $ less accumulated depreciation $ equipment $ less accumulated depreciation $ land $ and land held for future use $
Intangible assets include a franchise $ goodwill $ and discount on bonds payable $
Current liabilities include accounts payable $ notes payableshortterm $ and longterm $ and income taxes payable $
Longterm liabilities are composed solely of bonds payable due Stockholders equity has preferred stock, no par value, authorized shares, issued shares for $; and common stock, $ par value, authorized shares, issued shares at an average price of $ In addition, the corporation has retained earnings of $
Instructions
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.
