Bruno Company has seceded to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
Bruno Company
Balance Sheet
December 31, 2010
Current Assets
|
Current Assets
|
|
|
|
|
Cash
|
$350,000
|
|
|
Accounts Receivable (net)
|
340,000
|
|
|
Inventories at lower of average cost or market
|
401,000
|
|
|
Trading securities - at cost (fair value $120,000)
|
140,000
|
|
Property, plant and equipment
|
|
|
|
|
Building (net)
|
609,000
|
|
|
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
|
155,000
|
|
|
Notes payable (due next year)
|
175,000
|
|
|
Pension obligation
|
102,000
|
|
|
Rent payable
|
49,000
|
|
|
Premium on bonds payable
|
53,000
|
|
Long-term liabilities
|
|
|
|
|
Bonds payable
|
550,000
|
|
Stockholders' Equity
|
|
|
|
|
Common stock, $1.00 par, authorized
|
|
|
|
400,000 shares, issued 290,000
|
290,000
|
|
|
Additional paid-in capital
|
240,000
|
|
|
Retained earnings
|
?
|
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.