Corrections to Balance Sheet The Cable Company prepared the following balance sheet:
|
CABLE COMPANY |
|||
|
Working capital |
$22,800 |
Noncurrent liabilities |
$62,000 |
|
Other assets |
152,000 |
Stockholders’ equity |
112,800 |
|
Total |
$174,800 |
Total |
$174,800 |
Your analysis of these accounts reveals the following information:
1. Working capital consists of:
|
Land |
$12,000 |
|
Accounts due from customers |
18,000 |
|
Accounts due to suppliers |
22,700 |
|
Inventories, including office supplies of $3,500 |
35,500 |
|
Income taxes owed |
16,400 |
|
Wages owed |
3,600 |
|
Note owed to bank (due December 31, 2009) |
17,000 |
|
Securities held as a temporary investment |
17,000 |
|
$22,800 |
2. Other assets include:
|
Cash |
$12,300 |
|
Prepaid insurance |
2,400 |
|
Buildings and equipment |
100,000 |
|
Discount on bonds payable |
3,000 |
|
Investment in available for sale stock |
29,000 |
|
Treasury stock (at cost) |
5,300 |
|
$152,000 |
3. Noncurrent liabilities consist of: 4. Stockholders’ equity includes:
|
Bonds payable (due 2017) |
$33,000 |
|
Allowance for doubtful accounts |
1,400 |
|
Premium on preferred stock |
2,600 |
|
Common stock, $5 par |
25,000 |
|
$62,000 |
4. Stockholders’ equity includes:
|
Accumulated depreciation: |
$40,000 |
|
buildings and equipment |
12,000 |
|
Preferred stock, $100 par |
15,600 |
|
Premium on common stock |
40,000 |
|
Retained earnings |
6,500 |
|
Accrued pension cost |
1,300 |
|
Unrealized decrease in value of available for sale securities |
$112,800 |
Required
Based on your analysis, prepare a properly classified December 31, 2007 balance sheet for the Cable Company.