ACCT 401L Lab Assignment #4
Presented below is the balance sheet of Columbia Corporation for the current year, 2010.
The following information is presented.
The current assets section includes: cash $150,000, accounts receivable $170,000 less
$10,000 for allowance for doubtful accounts, inventories $180,000, and unearned
revenue $5,000. Inventories are stated on the lower of FIFO cost or market.
The investments section includes: the cash surrender value of a life insurance contract
$40,000; investments in common stock, short-term (trading) $80,000 and long-term
(available-for-sale) $270,000, and bond sinking fund $250,000. The cost and fair value
of investments in common stock are the same.
Property, plant, and equipment includes: buildings $1,040,000 less accumulated
depreciation $360,000; equipment $450,000 less accumulated depreciation $180,000;
land $500,000; and land held for future use $270,000.
Intangible assets include: a franchise $165,000; goodwill $100,000; and discount on
bonds payable $40,000.