Additional information: The buildings, land, and machinery are all stated at cos

Question

Additional information:

The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $56,000 but, due to a significant increase in market value, is listed at $132,000. The increase in the land account was credited to retained earnings.

Marketable equity securities consist of stocks of other corporations and are recorded at cost, $26,000 of which will be sold in the coming year. The remainder will be held indefinitely.

Notes payable are all long-term. However, a $160,000 note requires an installment payment of $40,000 due in the coming year.

Inventories are recorded at current resale value. The original cost of the inventories is $166,000.

Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets Buildings $ 756,000 Land 268,000 Cash 66,000 Accounts receivable (net) 132,000 Inventories 252,000 Machinery 286,000 Patent (net) 106,000 Investment in marketable equity securities 72,000 Total assets $ 1,938,000 Liabilities and Shareholders' Equity Accounts payable $ 221,000 Accumulated depreciation 261,000 Notes payable 512,000 Appreciation of inventories 86,000 Common stock, authorized and issued
106,000 shares of no par stock 424,000 Retained earnings 434,000 Total liabilities and shareholders' equity $ 1,938,00

Explanation / Answer

HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets Current assets Cash 66000 Marketable securities 26000 Inventories 166000 Accounts receivable (net) 132000 Total current assets 390000 Investments Marketable securities ($72000 - $26000) 46000 Land held for sale 56000 Total investments 102000 Property. Plant, and equipment Land ($268000 - $132000) 136000 Buildings 756000 Machinery 286000 1178000 Accumulated depreciation -261000 Property, plant, and equipment (net) 917000 Intangible assets Patent 106000 Total assets 1515000 Liabilities and Shareholders' Equity Current liabilities Accounts payable 221000 Current maturities of long-term debt 40000 Total current liabilities 261000 Long-term liabilities Notes payable 472000 Total liabilities 733000 Shareholders' equity Common stock 424000 Retained earnings ($434000 - $76000) 358000 Total shareholders' equity 782000 Total liabilities and shareholders' equity 1515000

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