Answer:
Corrected Classified:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Current Assets:
Cash 70,000
Accounts receivable (net) 140,000
Inventories 170,000
Investment in marketable
equity securities 21,000
Total current assets $401,000
Land 280,000
Buildings 760,000
Accumulated depreciation -265,000 495,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable
equity securities 59,000
Total long-term assets $1,234,000
Total assets $ 1,635,000
Liabilities and Shareholders' Equity :
Current liabilities:
Accounts payable $ 225,000
Short-term Notes payable 27,500
Total current liabilities $252,500
Long-term liabilities:
Notes payable $492,500
Total liabilities $745,000
Equity:
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 379,000
Other comprehensive income 71,000 $890,000
Total liabilities and shareholders' equity $ 1,635,000
Step-by-step explanation:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $ 760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable
equity securities 80,000
Total assets $ 1,990,000
Liabilities and Shareholders' Equity
Accounts payable $ 225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $ 1,990,000
1. Retained Earnings 450,000
Fair Value Gain: Land (71,000)
Balance 379,000
Other comprehensive income:
Fair Value Gain of Land 71,000
3. Short-term Investment 21,000
Long-term Investment 59,000
4. Notes payable 520,000
Short-term Notes payable (27,500)
Long-term Notes payable 492,500
5. Inventory 260,000
Appreciation of inventories (90,000 )
Inventory value 170,000