Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings Appreciation capital (Note 1) Income taxes payable Reserve for depreciation recorded to date on the building $ 603.880 1.153,880 865,760 573,880 78,880 413,880 $3,690,160 Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $573,880. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $123.880 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $123,880 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings. Enter account name only and do not provide the descriptive information provided in the question.)
Equities Notes payable (Note 3) Common stock, authorized and issued, 1,000,000 shares, no par Retained earnings Appreciation capital (Note 1) Income taxes payable Reserve for depreciation recorded to date on the building $ 603.880 1.153,880 865,760 573,880 78,880 413,880 $3,690,160 Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $573,880. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $123.880 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $123,880 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. Prepare a corrected classified balance sheet in good form. The notes above are for information only. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings. Enter account name only and do not provide the descriptive information provided in the question.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 5RE
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