Exercise 5-5 Bruno Company

Question # 00002152 Posted By: expert-mustang Updated on: 10/09/2013 03:44 AM Due on: 10/09/2013
Subject Accounting Topic Accounting Tutorials:
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Exercise 5-5 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 31, 2012 Current assets Cash $264,970 Accounts receivable (net) 344,970 Inventories (lower-of-average-cost-or-market) 405,970 Equity investments (trading)—at cost (fair value $123,050) 143,050 Property, plant, and equipment Buildings (net) 573,050 Equipment (net) 163,050 Land held for future use 178,050 Intangible assets Goodwill 84,970 Cash surrender value of life insurance 94,970 Prepaid expenses 16,970 Current liabilities Accounts payable 138,050 Notes payable (due next year) 129,970 Pension obligation 85,050 Rent payable 53,970 Premium on bonds payable 57,970 Long-term liabilities Bonds payable 503,050 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 294,970 294,970 Additional paid-in capital 184,970 Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $164,970 and for the office equipment, $109,970. The allowance for doubtful accounts has a balance of $21,970. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List property plant and equipment in order of buildings and equipment.)
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