The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 106,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 756,080 268,080 66,080 132,000 252,080 286,000 106,000 72,080 $1,938,000 $ 221,080 261,080 512,080 86,000 424,080 434,000 $1,938,000 Additional Information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The Increase in the land account was credited to retained earnings. 2. The Investment in equity securities account consists of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long term. However, a $160,000 note requires an Installment payment of $40,000 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the Inventory is $166,000. Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be Indicated by a minus sign.)
The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders' Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 106,000 shares of no par stock) Retained earnings Total liabilities and shareholders' equity $ 756,080 268,080 66,080 132,000 252,080 286,000 106,000 72,080 $1,938,000 $ 221,080 261,080 512,080 86,000 424,080 434,000 $1,938,000 Additional Information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The Increase in the land account was credited to retained earnings. 2. The Investment in equity securities account consists of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long term. However, a $160,000 note requires an Installment payment of $40,000 due in the coming year. 4. Inventory is recorded at current resale value. The original cost of the Inventory is $166,000. Required: Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be Indicated by a minus sign.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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