Balance Sheet Preparation Due Thursday, February 23, 2017
The following is the adjusted trial balance for Canine Corporation on December 31, 2016.
Account Title Debits Credits
Cash 45,000
Investments 110,000
Accounts receivable 68,000
Allowance for Uncollectible Accounts 8,000
Inventories 200,000
Prepaid Insurance 9,000
Land 90,000
Buildings 420,000
Equipment 110,000
Accumulated depreciation 165,000
Patents (net of amortization) 10,000
Accounts payable 75,000
Notes payable 130,000
Interest payable 20,000
Bonds payable 240,000
Common stock 100,000
Additional paid in capital in excess of par 200,000
Retained earnings (before closing) 118,000
Other accumulated comprehensive income (loss) 10,000
Treasury stock, at cost 15,000
Cash dividends 3,000
Dog food sales 104,000
Cost of goods sold 70,000 .
Totals 1,160,000 1,160,000
Additional information:
The investment account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The remainder of these investments is intended to be sold in the coming year.
The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.
The cash account includes $15,000 set aside in a fund that is restricted for the repayment of bonds that mature in 2030 and $23,000 of commercial paper that is due in 60 days.
The notes payable account consists of the following separate notes:
a $30,000 note due in six months
a $50,000 note due in six years
a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2015
The corporation has 10,000 shares of $10 par value common stock issued. 50,000 shares are authorized and 9,000 shares are outstanding.
Required: This assignment should be presented professionally with appropriate $ signs and underlining. The accounts have been adjusted but not closed, so you will need to determine the appropriate balance for Retained Earnings.
1. Prepare a classified balance sheet for Canine Corporation at December 31, 2016.
2. Calculate the current ratio and working capital