E4.5 (LO 1) (Preparation of a Corrected Balance Sheet) Uhura Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. Current assets Cash Uhura Company Balance Sheet For the Year Ended 2025 Accounts receivable (net) Inventory (lower-of-cost-or-net realizable value) Equity investments (to be sold in the next year) at cost (fair value $120,000) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Held-to maturity debt investment Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity Common stock, $1.00 par, authorized 400,000 shares, issued 290,000 Paid-in capital in excess of par Retained earnings $230,000 340,000 401,000 140,000 570,000 160,000 175,000 80,000 90,000 12,000 135,000 125,000 82,000 49,000 53,000 500,000 290,000 160,000 ? 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 equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.
E4.5 (LO 1) (Preparation of a Corrected Balance Sheet) Uhura Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. Current assets Cash Uhura Company Balance Sheet For the Year Ended 2025 Accounts receivable (net) Inventory (lower-of-cost-or-net realizable value) Equity investments (to be sold in the next year) at cost (fair value $120,000) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Held-to maturity debt investment Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity Common stock, $1.00 par, authorized 400,000 shares, issued 290,000 Paid-in capital in excess of par Retained earnings $230,000 340,000 401,000 140,000 570,000 160,000 175,000 80,000 90,000 12,000 135,000 125,000 82,000 49,000 53,000 500,000 290,000 160,000 ? 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 equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E4.5 (LO 1) (Preparation of a Corrected Balance Sheet) Uhura Company has decided to expand
its operations. The bookkeeper recently completed the following balance sheet in order to obtain
additional funds for expansion.
Current assets
Cash
Uhura Company
Balance Sheet
For the Year Ended 2025
Accounts receivable (net)
Inventory (lower-of-cost-or-net realizable value)
Equity investments (to be sold in the next year)
at cost (fair value $120,000)
Property, plant, and equipment
Buildings (net)
Equipment (net)
Land held for future use
Intangible assets
Goodwill
Held-to maturity debt investment
Prepaid expenses
Current liabilities
Accounts payable
Notes payable (due next year)
Pension obligation
Rent payable
Premium on bonds payable
Long-term liabilities
Bonds payable
Stockholders' equity
Common stock, $1.00 par, authorized
400,000 shares, issued 290,000
Paid-in capital in excess of par
Retained earnings
$230,000
340,000
401,000
140,000
570,000
160,000
175,000
80,000
90,000
12,000
135,000
125,000
82,000
49,000
53,000
500,000
290,000
160,000
?
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 equipment, $105,000. The allowance for
doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.
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