Solution-Prepare a revised balance sheet

Prepare a revised balance sheet

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Reference no: EM131767220

Question - Preparation of a Corrected Balance Sheet

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 30, 2010


Current assets
Cash	$232,100
Accounts receivable (net)	325,100
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)	573,870
Office equipment (net)	160,000
Land held for future use	178,870
Intangible assets
Goodwill	80,000
Cash surrender value of life insurance	90,000
Prepaid expenses	12,000
Current liabilities
Accounts payable	108,870
Notes payable (due next year)	127,100
Pension obligation	82,000
Rent payable	51,100
Premium on bonds payable	53,000
Long-term liabilities
Bonds payable	503,870
Stockholders' equity
Common stock, $1.00 par, authorized
400,000 shares, issued 290,000	290,000
Additional paid-in capital	160,000
Retained earnings	?

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.

Reference no: EM131767220

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Prepare a revised balance sheet

Reference no: EM131767220

Reference no: EM131767220

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