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Using the information given below, prepare a classified balance sheet in good fo

ID: 461988 • Letter: U

Question

Using the information given below, prepare a classified balance sheet in good form for Babic Company at December 31, 2010.

Accounts Payable

$   83,000

Accounts Receivable

109,000

Accrued Liabilities

22,000

Accumulated Depreciation

326,000

Cash

32,000

Common Stock

107,000

Convertible Debentures

561,000

Deferred Income Taxes (long-term liability)

117,000

Equipment

1,070,000

Inventory

146,000

Land

917,000

Marketable Securities

11,000

Paid-In Capital in Excess of Par

141,000

Retained Earnings

952,000

Treasury Stock

24,000

Accounts Payable

$   83,000

Accounts Receivable

109,000

Accrued Liabilities

22,000

Accumulated Depreciation

326,000

Cash

32,000

Common Stock

107,000

Convertible Debentures

561,000

Deferred Income Taxes (long-term liability)

117,000

Equipment

1,070,000

Inventory

146,000

Land

917,000

Marketable Securities

11,000

Paid-In Capital in Excess of Par

141,000

Retained Earnings

952,000

Treasury Stock

24,000

Explanation / Answer

Babic Company

Balance Sheet

December 31, 2010

Assets

Current Assets:

   Cash

$ 32,000

   Marketable Securities

11,000

   Accounts Receivable

109,000

   Inventory

  146,000

     Total Current Assets

$ 298,000

Tangible Assets:

   Land

$ 917,000

   Equipment

$1,070,000

   Less: Accumulated Depreciation

  (326,000)

   744,000

1,661,000

Total Assets

$1,959,000

Liabilities and Stockholders' Equity

Current Liabilities:

   Accounts Payable

$   83,000

   Accrued Liabilities

    22,000

     Total Current Liabilities

$ 105,000

Convertible Debentures

561,000

Deferred Income Taxes

117,000

Stockholders' Equity:

   Common Stock

$ 107,000

   Paid-In Capital in Excess of Par

141,000

   Retained Earnings

   952,000

$1,200,000

Less: Treasury Stock

  (24,000)

1,176,000

Total Liabilities and Stockholders' Equity

$1,959,000

Babic Company

Balance Sheet

December 31, 2010

Assets

Current Assets:

   Cash

$ 32,000

   Marketable Securities

11,000

   Accounts Receivable

109,000

   Inventory

  146,000

     Total Current Assets

$ 298,000

Tangible Assets:

   Land

$ 917,000

   Equipment

$1,070,000

   Less: Accumulated Depreciation

  (326,000)

   744,000

1,661,000

Total Assets

$1,959,000