Part I: Classified balance sheet
Bonus Opportunity (due 2/20)
1. Use the following post-closing balance information at 12/31/20 to create a professional balance sheet.
All amounts listed in thousands.
Inventory 250 Deferred tax asset 150
Prepaid insurance 35 Accounts payable 40
Accumulated depreciation 6,000 Bonds payable (2030 maturity) 7,000
Note receivable (2022 maturity) 40 Equipment 3,000
Treasury stock 5 Accounts receivable 40
Premium on bonds payable 100 Preferred stock 500
Accumulated other comprehensive 25 Goodwill 200
income (debit balance)
Allowance for doubtful accounts 3 Discount on notes receivable 4
Security FV adjustment - AFS (debit 10 Pension liability 350
balance)
Additional paid-in capital 5,000 Cash and cash equivalents 600
Available for sale securities - debt 50 Common stock 30
(2025 maturity)
Factories 15,000 Accrued expenses and payables 70
10% of the bonds will come due 7/1/21. 5% of the premium will expire with their maturity.
10% of the equipment account is no longer used in operations and is being held idle. 5% of the
accumulated depreciation is associated with this idle equipment.
5% of the cash and cash equivalents are legally-restricted in accordance with agreements tied to the
long-term bonds payable.
Only 70% of the prepaid insurance contract will be used in 2021.
The inventory in the ledger is presented at cost, the net realizable value of the inventory is $190,000.
