Question: Presented below is the balance sheet for
Presented below is the balance sheet for HHD, Inc., at December 31, 2021.
The captions shown in the summarized statement above include the following:
a. Current assets: cash, $150,000; accounts receivable (net), $200,000; inventory, $225,000; and prepaid insurance, $25,000.
b. Investments: investment in equity securities, short term, $90,000, and long term, $160,000; and restricted cash, long term, $250,000.
c. Property, plant, and equipment: buildings, $1,500,000 less accumulated depreciation, $600,000; equipment, $500,000 less accumulated depreciation, $200,000; and land, $800,000.
d. Intangible assets net of amortization: patent, $110,000; and copyright, $90,000.
e. Current liabilities: accounts payable, $100,000; notes payable, short term, $150,000, and long term, $90,000; and income taxes payable, $60,000.
f. Long-term liabilities: bonds payable due 2023.
g. Shareholders’ equity: common stock, $1,000,000; retained earnings, $800,000. Five hundred thousand shares of no-par common stock are authorized, of which 200,000 shares were issued and are outstanding.
Required:
Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2021. Include headings for each classification, as well as titles for each classification’s subtotal. An example of a classified balance sheet can be found in the Concept Review Exercise at the end of Part A of this chapter.
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