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Unformatted text preview: P4-4 Balance SheetThe following is a list (in random order) of the December 31, 2010 balance sheet accounts of the International Products Company:Additional paid-in capital on preferred stock$1,600 Accounts payable$16,500 Accounts receivable13,800 Prepaid insurance900 Dividends payable1,800 Discount on bonds payable2,000 Buildings50,000 Common stock, $10 par15,000 Bonds payable (due 2016)29,000 Equipment29,000 Retained earnings25,800 Allowance for doubtful accounts700 Office supplies1,900 Preferred stock, $50 par10,000 Current income taxes payable4,200 Accumulated depreciation: buildings12,400 Accumulated depreciation: equipment8,300 Current interest payable2,900 Patents (net)2,400 Investment in held-to-maturity bonds9,000 Notes payable (due January 1, 2013)17,000 Cash8,200 Inventory24,400 Treasury stock (at cost)1,500 Additional paid-in capital on common stock7,700 Accrued wages3,700 Sinking fund for bond retirement4,000 Land9,500 Required1. Prepare a properly classified balance sheet for the International Products Company on December 31, 2010.2. Assume instead that International Products Company uses IFRS. Prepare its balance sheet on December 31,2010P4-4 Balance SheetName:Pamela BatesAn asterisk (*) will appear next to an incorrect amount(s) in the outlined cell(s). If you are still gettinga red asterisk, and think the answer is correct, but used a formula in the cell try manually typingin the answer according to the rounding instructions.Required1. Prepare a properly classified balance sheet for the International Products Company on December 31, 2010.INTERNATIONAL PRODUCTS COMPANYBalance SheetDecember 31, 2010AssetsCurrent AssetsCash$8,200 Accounts Receivable$13,800 Less: Allowance for doubtful accounts(700)13,100 Inventory24,400 Prepaid items:Insurance$900 Office supplies1,900 2,800 Total current assets$48,500 Long-Term InvestmentsInvestment in held-to-maturity bonds$9,000 Sinking fund for bond retirement4,000 Total long-term investments13,000 Property, Plant, and EquipmentLand$9,500 Buildings$50,000...
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