ACC 421-The following is the balance sheet of Sameed Brothers Corporation
Question # 00482746
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Updated on: 02/11/2017 07:04 AM Due on: 02/11/2017
WRITING (Critique of Balance Sheet Format and Content) The following is the balance sheet of Sameed Brothers Corporation (000s omitted).
| SAMEED BROTHERS CORPORATION Balance Sheet December 31, 2017 | ||
| Assets | ||
| Current assets | ||
| Cash | $26,000 | |
| Marketable securities | 18,000 | |
| Accounts receivable | 25,000 | |
| Inventory | 20,000 | |
| Supplies | 4,000 | |
| Stock investment in subsidiary company | ?20,000 | $113,000 |
| Investments | ||
| Treasury stock | 25,000 | |
| Property, plant, and equipment | ||
| Buildings and land | 91,000 | |
| Less: Reserve for depreciation | ?31,000 | 60,000 |
| Other assets | ||
| Cash surrender value of life insurance | 19,000 | |
| Total assets | $217,000 ?? ? ???? | |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $22,000 | |
| Reserve for income taxes | 15,000 | |
| Customers’ accounts with credit balances | ??????1 | $ 37,001 |
| Deferred credits | ||
| Unamortized premium on bonds payable | 2,000 | |
| Long-term liabilities | ||
| Bonds payable | ??60,000 | |
| Total liabilities | 99,001 | |
| Common stock | ||
| Common stock, par $5 | 85,000 | |
| Earned surplus | 24,999 | |
| Cash dividends declared | ???8,000 | ?117,999 |
| Total liabilities and stockholders’ equity | $217,000 ?? ? ???? |
Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.
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Rating:
/5
Solution: ACC 421-The following is the balance sheet of Sameed Brothers Corporation