Presented below is the trial balance of scott butler corporation at december 31. 2014.

E5-12 (Lo3) (Preparation of a Balance Sheet Presented below is the trial balance of Scott Butler Corporation at December 31, 2017 Debit Credit Cash 197,000 Sales Revenue 8,100,000 Debt Investments (trading) (at cost, $145,000) 153,000 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 299,000 Equity Investments (long-term) 277,000 Notes Payable (short-term) Accounts Payable 455,000 Selling Expenses 2,000,000 Investment Revenue 63,000 260,000 Buildings 1,040,000 Dividends Payable 136,000 Accrued Liabilities 96,000 Accounts Receivable 435,000 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 25,000 Administrative Expenses 900,000 Interest Expense 211,000 597,000 Inventory Gain 80,000 Notes Payable (long-term) 900,000 Equipment 600,000 1,000,000 Bonds Payable 60,000 Accumulated Depreciation-Equipment 160,000 Franchises 1,000,000 Common Stock ($5 par 191,000 Treasury Stock 195,000 Patents 78,000 Retained Earnings Paid-in Capital in Excess of Par 80,000 $12,315,000 $12,315,000 Totals Instructions Prepare a balance sheet at December 3 2017, for Scott Butler Corporation. ore income taxes

Answer

Solution. Preparetion of Balance sheet.
Scott Butler Corporation
Balance sheet
31-Dec-17
Current Assets:
Cash           197,000
Treding Securities           153,000
Account receivable            435,000
Less: Allowances for doubtful accounts            (25,000)           410,000
Inventories           597,000
Total current assets     1,357,000
Longterm investments:
Investment in bonds           299,000
Investments in stocks           277,000
Total long-term investments         576,000
Property,Plant, and equipment:
Land           260,000
Buildings        1,040,000
Less: Accumulated depreciation         (152,000)           888,000
Equipment            600,000
Less: Accumulated depreciation-Equipment            (60,000)           540,000
Total property,plant, and equipment     1,688,000
Intengiable assets:
Franchise           160,000
Patent           195,000
Total intangiable assets         355,000
Total assets     3,976,000
Liabiliuties and Stockholders Equity:
Current libilities:
Account payable           455,000
Short term notes payable              90,000
Dividends payable           136,000
Accured libilities              96,000
Total current libilities         777,000
Long term debt:
Long term notes payable           900,000
Bond payable        1,000,000
Total longterm libilities     1,900,000
Total libilities     2,677,000
Stockholder equity:
Paid-in-capital:
Common stock ($5 par)        1,000,000
Additional paid-in-capital              80,000        1,080,000
Retained earnings              41,000
Total paid-in-capital and retained earnings        1,490,000
Less: Treduary stock         (191,000)
Total stockholders equity     1,299,000
Total liabilities and stockholders equity     3,976,000
Working.
Computation of Retained Earnings:
Sales        8,100,000
Investment revenue              63,000
Extraordinary gain              80,000
Cost of goods sold      (4,800,000)
Selling expenses      (2,000,000)
Administrative expenses         (900,000)
Interest expense         (211,000)
Net income            332,000
Beginning retained earnings              78,000
Net income            332,000
Ending retained earnings            410,000

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