E 5 Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented on the next page in order to obtain additional funds for expansion.
|
BRUNO COMPANY |
|
|
Current assets |
|
|
Cash |
$260,000 |
|
Accounts receivable (net) |
340,000 |
|
Inventories (lower of average cost or market) |
401,000 |
|
Equity investments (trading)—at cost (fair value $120,000) |
140,000 |
|
Property, plant, and equipment |
|
|
Buildings (net) |
570,000 |
|
Office equipment (net) |
160,000 |
|
Land held for future use |
175,000 |
|
Intangible assets |
|
|
Goodwill |
80,000 |
|
Cash surrender value of life insurance |
90,000 |
|
Prepaid expenses |
12,000 |
|
Current liabilities |
|
|
Accounts payable |
135,000 |
|
Notes payable (due next year) |
125,000 |
|
Pension obligation |
82,000 |
|
Rent payable |
49,000 |
|
Premium on bonds payable |
53,000 |
|
Long term liabilities |
|
|
Bonds payable |
500,000 |
|
Stockholders’ equity |
|
|
Common stock, $1.00 par, authorized |
|
|
400,000 shares, issued 290,000 |
290,000 |
|
Additional paid in capital |
180,000 |
|
Retained earnings |
? |
Instructions
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long term liability.