Question - Account balances and supplemental information for the Bighorn Corporation as of December 31, 2012, are given below:
Accounts Payable ....................................... $ 75,900
Accounts Receivable .................................... 141,600
Accumulated Depreciation--Equipment .................... 84,000
Bonds Payable .......................................... 300,000
Cash ................................................... 243,900
Common Stock ........................................... 1,560,000
Deferred Income Tax Liability (noncurrent) ............. 6,900
Dividends Payable ...................................... 45,000
Equipment .............................................. 840,000
Income Taxes Payable ................................... 91,500
Inventory .............................................. 395,100
Investment in Land ..................................... 510,000
Investment in Stock of Subsidiary ...................... 492,000
Note Payable ........................................... 120,000
Notes Receivable ....................................... 150,000
Prepaid Insurance ...................................... 7,200
Retained Earnings ...................................... 453,600
Salaries and Wages Payable ............................. 42,900
(a) $300,000 of 12% bonds were sold on November 1, 2012, at par, annual interst payments are are due on 11/01.
(b) 40,000 shares of $30 par value common stock were sold for $1,560,000.
(c) All the equipment was purchased on January 2, 2011. The depreciation rate is 10 percent per year.
(d) 5 percent of accounts receivable are expected to be uncollectible.
(e) A two-year insurance policy was purchased on May 1, 2012, for $7,200.
(f) Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31, 2012.
(g) $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2012. The loan is to be repaid in 10 semiannual payments of $12,000 plus interest, with the first payment due January 1, 2013.
Prepare a properly classified balance sheet in report form for Bighorn Corporation as of December 31, 2012.