| Exercise 5 5 |
Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
| UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2014 |
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| Current assets | ||
| Cash | $232,850 | |
| Accounts receivable (net) | 342,850 | |
| Inventory (lower of average cost or market) | 403,850 | |
| Equity investments (trading) at cost (fair value $124,960) | 144,960 | |
| Property, plant, and equipment | ||
| Buildings (net) | 574,960 | |
| Equipment (net) | 164,960 | |
| Land held for future use | 179,960 | |
| Intangible assets | ||
| Goodwill | 82,850 | |
| Cash surrender value of life insurance | 92,850 | |
| Prepaid expenses | 14,850 | |
| Current liabilities | ||
| Accounts payable | 139,960 | |
| Notes payable (due next year) | 127,850 | |
| Pension obligation | 86,960 | |
| Rent payable | 51,850 | |
| Premium on bonds payable | 55,850 | |
| Long term liabilities | ||
| Bonds payable | 504,960 | |
| Stockholders’ equity | ||
| Common stock, $1.00 par, authorized 400,000 shares, issued 292,850 | 292,850 | |
| Additional paid in capital | 162,850 | |
| Retained earnings | ? |
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $162,850 and for the equipment, $107,850. The allowance for doubtful accounts has a balance of $19,850. The pension obligation is considered a long term liability.
(List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)