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E5-5 (Preparation of a Corrected Balance Sheet)

Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.


BRUNO COMPANY

Balance Sheet

December 31, 2010

Current assets
Cash $260,000
Accounts receivable (net) 340,000
Inventories at lower of average cost or market 401,000
Trading securities-at cost (fair value $120,000) 140,000
Property, plant, and equipment
Building (net) 570,000
Office equipment (net) 160,000
Land held for future use 175,000
Intangible assets
Goodwill 80,000
Cash surrender value of life insurance 90,000
Prepaid expenses 12,000
Current liabilities
Accounts payable 135,000
Notes payable (due next year) 125,000
Pension obligation 82,000
Rent payable 49,000
Premium on bonds payable 53,000
Long-term liabilities
Bonds payable 500,000
Stockholders' equity
Common stock, $1.00 par, authorized
400,000 shares, issued 290,000 290,000
Additional paid-in capital 180,000
Retained earnings ?

Answer on Attached file: Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability. (List current assets in order of liquidity. List multiple entries for Property, plant and equipment, Long-term investments and Current liabilities from largest to smallest amounts, e.g. 10, 5, 3.)
E5-5 Fillable answers.docx

BRUNO COMPANY
Balance Sheet

December 31, 2010
Assets
Current assets












$

Less:















Total current assets

Long­term investments
















Property, plant, and equipment




$





Less:


$


















Less:

Intangible assets













Total assets





$









Current liabilities








$









Total current liabilities

Long­term liabilities





$






$




Liabilities and Stockholders' Equity



Add:







Total liabilities

Stockholders' equity
Common stock, $1 par,
authorized
400,000 shares, issued 290,000 shares


























Total stockholders' equity






Total liabilities and stockholders' equity
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Accounting-8370152.doc

BRUNO COMPANY
Balance Sheet

December 31, 2010
Assets
Current assets












$

Less:















Total current assets...

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