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E5-5 (Preparation of a Corrected Balance Sheet) Uhura Company has decided to expand its operations.

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E5-5 (Preparation of a Corrected Balance Sheet) 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 2007;Current assets;Cash $230,000;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) 570,000;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 135,000;Notes payable (due next year) 125,000;Pension obligation 82,000;Rent payable 49,000;Premium on bonds payable 53,000;Long-term liabilities;Bonds payable 500,000;Stockholders' equity;Common stock, $1.00 par, authorized;400,000 shares, issued 290,000 290,000;Additional paid-in capital 160,000;Retained earnings?;Instructions;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.

 

Paper#25623 | Written in 18-Jul-2015

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