Your firm has been engaged to examine the financial statements of Riverbed Corpo
ID: 2535432 • Letter: Y
Question
Your firm has been engaged to examine the financial statements of Riverbed Corporation for the year 2017. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2012. The client provides you with the information below.
RIVERBED CORPORATION
BALANCE SHEET
DECEMBER 31, 2017
Assets
Liabilities
The supplementary information below is also provided.
Analyze the above information to prepare a corrected balance sheet for Riverbed in accordance with proper accounting and reporting principles. Prepare a description of any notes that might need to be prepared. The books are closed and adjustments to income are to be made through retained earnings. (List current assets in order of liquidity. Enter account name only and do not provide descriptive information.)
RIVERBED CORPORATION
BALANCE SHEET
DECEMBER 31, 2017
Assets
Liabilities
Current assets $1,880,000 Current liabilities $971,000 Other assets 5,131,000 Long-term liabilities 1,444,000 Capital 4,596,000 $7,011,000 $7,011,000Explanation / Answer
RIVERBED CORPORATION
BALANCE SHEET
DECEMBER 31, 2017
Current Assets 1693000 Current Liabilities 1194000
Other Assets 5123000 Long term liabilities 1444000
Capital 4178000
$223000
1194000
RIVERBED CORPORATION
BALANCE SHEET
DECEMBER 31, 2017
Current Assets 1693000 Current Liabilities 1194000
Other Assets 5123000 Long term liabilities 1444000
Capital 4178000
6816000 6816000 Cash (restricted in the amount of $299,000 for plant expansion) $580,000 Investments in land 184,000 Accounts receivable less allowance of $31,000 472,000 Inventories (LIFO flow assumption)(644000-187000) 457,000 $1,693000 Other assets include: Prepaid expenses $64,000 Plant and equipment less accumulated depreciation of $1,410,000 4,059,000 Cash surrender value of life insurance policy 82,000 Unamortized bond discount(60000- 60000 x 1/5 x 8/12) 52000 Notes receivable (short-term) 160,000 Goodwill 257,000 Land 449,000 $5,123,000 Current liabilities include: Accounts payable $515,000 Notes payable (due 2020) 160,000 Estimated income taxes payable 143,000 Premium on common stock 153,000 Accrued Wages$223000
1194000
Long-term liabilities include: Unearned revenue $497,000 Dividends payable (cash) 197,000 8% bonds payable (due May 1, 2022) 750,000 $1,444,000 Capital includes: Retained earnings(2736000-187000-223000-8000) $2318000 Common stock, par value $10; authorized 200,000 shares, 186,000 shares issued 1,860,000 $4,178,000Related Questions
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