Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed.

Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
P5.4
issued and outstanding Instructions Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed. P5.4 (LO 2) Gro upwork (Preparation of a Corrected Balance Sheet) The balance sheet of Kishwaukee Corporation as of December 31, 2020, is as follows. Kishwaukee Corporation Balance Sheet December 31, 2020 Assets Goodwill (Note 2) Buildings (Note 1) Inventory $ 120,000 1,640,000 312,100 Land 950,000 170,000 Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion 87,000 175,900 Cash in bank 70,000 Debt investments (held-to-maturity) 138,000 $3,663,000 Equities Notes payable (Note 3) Common stock, authorized and issued, 1.000,000 shares, no par Retained earnings Noncontrolling interest Appreciation capital (Note 1) Income taxes payable Reserve for depreciation recorded to date on the building $ 600,000 1,150,000 803,000 55,000 570,000 75.000 410,000 $3,663.000 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 $570,000. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $120,000 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $120,000 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. MacBook Air
Transcribed Image Text:issued and outstanding Instructions Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed. P5.4 (LO 2) Gro upwork (Preparation of a Corrected Balance Sheet) The balance sheet of Kishwaukee Corporation as of December 31, 2020, is as follows. Kishwaukee Corporation Balance Sheet December 31, 2020 Assets Goodwill (Note 2) Buildings (Note 1) Inventory $ 120,000 1,640,000 312,100 Land 950,000 170,000 Accounts receivable Treasury stock (50,000 shares) Cash on hand Assets allocated to trustee for plant expansion 87,000 175,900 Cash in bank 70,000 Debt investments (held-to-maturity) 138,000 $3,663,000 Equities Notes payable (Note 3) Common stock, authorized and issued, 1.000,000 shares, no par Retained earnings Noncontrolling interest Appreciation capital (Note 1) Income taxes payable Reserve for depreciation recorded to date on the building $ 600,000 1,150,000 803,000 55,000 570,000 75.000 410,000 $3,663.000 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 $570,000. Depreciation has been recorded based on cost. Note 2: Goodwill in the amount of $120,000 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $120,000 was credited to Retained Earnings. Note 3: Notes payable are long-term except for the current installment due of $100,000. MacBook Air
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Liquidity Risk Exposure
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS