Problem 5-2
Presented below are a number of balance sheet items for Sage, Inc., for the current year, 2017.
Goodwill
$ 127,870 Accumulated Depreciation-Equipment
$ 292,320
Payroll Taxes Payable
180,461 Inventory
242,670
Bonds payable
302,870 Rent payable (short-term)
47,870
Discount on bonds payable
15,320 Income taxes payable
101,232
Cash
362,870 Rent payable (long-term)
482,870
Land
482,870 Common stock, $1 par value
202,870
Notes receivable
448,570 Preferred stock, $10 par value
152,870
Notes payable (to banks)
267,870 Prepaid expenses
90,790
Accounts payable
492,870 Equipment
1,472,870
Retained earnings
1,602,870 Buildings
123,870
Income taxes receivable
100,500 Accumulated Depreciation-Buildings
270,520
Notes payable (long-term)
? Equity investments (trading)
1,642,870
Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable
are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same. (List Current Assets in order of liquidity. List Property, Plant and Equipment in
order of Land, Building and Equipment.)
