10/27/2017Assignment Print View …4/6FinancialStatementsDifficulty: 3 HardLearning Objective: 03-03 Identify and describe the various liability and shareholders' equity classifications. Problem 3-7Balance sheetpreparation;errors [LO3-2,3-3] Learning Objective: 03-02 Identify and describe the various asset classifications. Problem 3-7 Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2018 Assets Buildings$753,000 Land259,000 Cash63,000 Accounts receivable (net)126,000 Inventories246,000 Machinery283,000 Patent (net)103,000 Investment in marketable equity securities66,000 Total assets $1,899,000 Liabilities and Shareholders' Equity Accounts payable$218,000 Accumulated depreciation258,000 Notes payable506,000 Appreciation of inventories83,000 Common stock, authorized and issued 103,000 shares of no par stock412,000 Retained earnings422,000 Total liabilities and shareholders' equity $1,899,000 Additional information: 1. 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 $53,000 but, due to a significant increase in market value, is listed at $126,000. The increase in the land account was credited to retained earnings. 2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $23,000 of which will be sold in the coming year. The remainder will be held indefinitely. 3. Notes payable are all long-term. However, a $130,000 note requires an installment payment of $32,500 due in the coming year. 4. Inventories are recorded at current resale value. The original cost of the inventories is $163,000. 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
