Response to the following problem:
Corrections to Balance Sheet The Brandt Company presents the following December 31, 2010 balance sheet:
BRANDT COMPANY
Sheet of Balances
For Year Ended December 31, 2010
|
Current assets
|
$44,100
|
Current liabilities
|
$ 66,600
|
|
Long-Term investments
|
13,600
|
Long Term liabilities
|
24,100
|
|
Property and equipment
|
123,500
|
Contributed capital
|
17,000
|
|
intangible assets
|
7,700
|
Unrealized capital
|
22,500
|
|
Other assets
|
13,600
|
Retained earnings
|
72,500
|
|
ToW sets
|
$202,700
|
foul equities
|
$202,700
|
The following information is also available:
1. Current assets include cash, $3,800; accounts receivable, $18,500; notes receivable (maturity date July 1, 2012), $10,000; and land, $12,000.
2. Long-term investments include a $4,600 investment in available-for-sale securities that are expected to be sold in 2011 and a $9,000 investment in Dray Company bonds that are expected to be held until their December 31, 2019 maturity date.
3. Property and equipment include buildings costing $63,400, inventory costing $30,500, and equipment costing $29,600.
4. Intangible assets include patents that cost $8,200 and on which $2,300 amortization has accumulated, and treasury stock that cost $1,800.
5. Other assets include prepaid insurance (which expires on November 30, 2011), $2,900; sinking fund for bond retirement, $7,000; and trademarks that cost $3,700 and are not impaired.
6. Current liabilities include accounts payable, $19,400; bonds payable (maturity date December 31, 2021), $40,000; and accrued income taxes payable, $7,200.
7. Long-term liabilities include accrued wages, $4,100; and mortgage payable (which is due in five equal annual payments starting December 31, 2011), $20,000.
8. Contributed capital includes common stock ($5 par) $11,000 and preferred stock ($100 par) $6,000.
9. Unrealized capital includes premium on bonds payable, $4,300; premium on preferred stock, $2,400; premium on common stock, $14,700; and unrealized increase in value of securities available for sale, $1,100.
10. Retained earnings includes unrestricted retained earnings, $37,800; allowance for doubtful accounts, $700; and accumulated depreciation on buildings and equipment of $21,000 and $13,000, respectively.
Required
Based on the preceding information, prepare a properly classified December 31, 2010 balance sheet for the Brandt Company.