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Exercise 5-5 Bruno Company

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Question;Exercise 5-5;Bruno Company has decided 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, 2012;Current assets;Cash $264,970;Accounts receivable (net) 344,970;Inventories (lower-of-average-cost-or-market) 405,970;Equity investments (trading)?at cost (fair value $123,050) 143,050;Property, plant, and equipment;Buildings (net) 573,050;Equipment (net) 163,050;Land held for future use 178,050;Intangible assets;Goodwill 84,970;Cash surrender value of life insurance 94,970;Prepaid expenses 16,970;Current liabilities;Accounts payable 138,050;Notes payable (due next year) 129,970;Pension obligation 85,050;Rent payable 53,970;Premium on bonds payable 57,970;Long-term liabilities;Bonds payable 503,050;Stockholders? equity;Common stock, $1.00 par, authorized 400,000 shares, issued 294,970 294,970;Additional paid-in capital 184,970;Retained earnings ?;Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $164,970 and for the office equipment, $109,970. The allowance for doubtful accounts has a balance of $21,970. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.)

 

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