While on assignment you discover that you have misplaced the balance sheet of Bird Corporation as of January 1, Year 1. However, you do have the following data on Bird Corporation:
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BIRD CORPORATION
Post-closing Trial Balance
December 31, Year 1
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Debit balances
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Cash
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$100,000
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Accounts receivable
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120,000
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Inventory
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130,000
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Property, plant, and equipment
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550,000
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Other noncurrent investments
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200,000
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Total
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$1,100,000
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Credit balances
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Accounts payable
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$100,000
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Current portion of long-term debt
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80,000
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Accumulated depreciation
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270,000
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Long-term debt
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200,000
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Common stock
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300,000
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Retained earnings
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150,000
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Total
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$1,100,000
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BIRD CORPORATION
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Statement of Cash Flows
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For Year Ended December 31, Year 1
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Cash flows from operations
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Net income
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$150,000
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Add (deduct) adjustment to cash basis
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Depreciation
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$ 85,000
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Loss on sale of equipment
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5,000
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Gain on sale of noncurrent investments
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(50,000)
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Increase in accounts receivable
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(30,000)
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Increase in inventories
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(20,000)
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Increase in accounts payable
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40,000
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30000
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Cash from operations
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180000
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Cash flows from investing activities
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Additions to property and equipment
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(150,000)
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Sale of equipment
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10,000
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Sale of investments
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95,000
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Cash used for investing activities
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(45000)
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Cash flows from financing activities
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Issuance of common stock
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10000
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Additions to long-term debt
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15000
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Decrease in current portion of long-term debt
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(30000)
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(15,000)
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Cash dividends
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(80,000)
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Cash used for financing activities
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(85,000)
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Net increase in cash
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$50,000
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Required:
Using the available data and information, prepare the balance sheet of Bird Corporation as of January 1, Year 1. T-accounts can be helpful in reconstructing the individual accounts. (Note: Equipment sold had accumulated depreciation of $50,000.)