Exercise 5-5 Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2014 Current assets Cash $230,000 Accounts receivable (net) 340,000 Inventory (lower-of-average-cost-or-market) 401,000 Equity investments (trading)-at cost (fair value $120,000) 140,000 Property, plant, and equipment Buildings (net) 570,000 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 160,000 Retained earnings ? Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the 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 Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.) Uhura Company Balance Sheet December 31, 2014 Assets $ $ : $ $ : : $ Liabilities and Stockholders\' Equity $ $ $ : $ Solution The revised balance sheet is as below Heads Amount Amount Current assets: Cash $230,000 Accounts receivable (Gross) (340,000 + 17,000 =) $357,000 Less: Allowance for doubtful accounts $17,000 $340,000 Inventory $401,000 Equity investments $140,000 Total current assets (a) 1,111,000 Property, plant, and equipment: Building (Gross) (570,000 + 160,000 =) $730,000 Less: Accumulated depreciation $160,000 $570,000 Equipment (Gross) (160,000 + 105,000 =) $265,000 Less: Accumulated depreciation $105,000 $160,000 Land $175,000 Goodwill $80,000 Cash surrender value $90,000 Prepaid expenses $12,000 Total property, plant, and equipment (b) $1,087,000 Total assets (a + b) $2,198,000 Current liabilities: Accounts payable $135,000 Notes payable $125,000 Rent payable $49,000 Premium on bonds payable $53,000 Total current liabilities (c) $362,000 Long-term liabilities: Pension obligation $82,000 Bonds payable $500,000 Total long-term liabilities (d) $582,000 Stockholders’ equity: Common stock $290,000 Additional paid-in capital $160,000 Retained earnings {(a + b) – c – d – common stock – additional paid-in capital} $804,000 Total stockholders’ equity (e) $1,254,000 Total liabilities and stockholders’ equity (c + d + e) $2,198,000 Heads Amount Amount Current assets: Cash $230,000 Accounts receivable (Gross) (340,000 + 17,000 =) $357,000 Less: Allowance for doubtf.