Answer:
Bramble Corporation
Assets:
Current Assets:
Cash $ 201,440
Debt Investments (trading)
(at cost, $145,000) 155,150
Accounts Receivable 437,150
Allowance for
Doubtful Accounts 27,150 410,000
Inventory 601,440
Total current assets $1,368,030
Long-term assets:
Debt Investments (long-term) 303,440
Equity Investments (long-term) 281.440
Land 262,150
Buildings 1,044,440
Accumulated Depreciation 152,000 892,440
Equipment 602,150
Accumulated Depreciation 60,000 542,150
Franchises 160,000
Patents 195,000
Total long-term assets $2,636,620
Total assets $4,004,650
Liabilities + Equity:
Current Liabilities:
Notes Payable (short-term) 92,150
Accounts Payable 457,150
Dividends Payable 140,440
Accrued Liabilities 98,150
Total current liabilities $787,890
Notes Payable (long-term) 904,440
Bonds Payable 1,004,440
Total long-term liabilities $1,908,880
Total liabilities $2,696,770
Common Stock ($5 par) 1,002,150
Treasury Stock 193,150
Net Stock outstanding 809,000
Retained Earnings, December 31 414,440
Paid-in Capital in Excess of Par 84,440
Total equity $1,307,880
Total liabilities + equity $4,004,650
Explanation:
a) Data and Calculations:
Debit Credit
Cash $ 201,440
Debt Investments (trading)
(at cost, $145,000) 155,150
Accounts Receivable 437,150
Inventory 601,440
Sales $ 8,102,150
Cost of Goods Sold 4,800,000
Allowance for Doubtful Accounts 27,150
Debt Investments (long-term) 303,440
Equity Investments (long-term) 281.440
Notes Payable (short-term) 92,150
Accounts Payable 457,150
Dividends Payable 140,440
Accrued Liabilities 98,150
Notes Payable (long-term) 904,440
Bonds Payable 1,004,440
Common Stock ($5 par) 1,002,150
Treasury Stock 193,150
Retained Earnings 82,440
Paid-in Capital in Excess of Par 84,440
Investment Revenue 67,180
Land 262,150
Buildings 1,044,440
Accumulated Depreciation-Buildings 152,000
Equipment 602,150
Accumulated Depreciation Equipment 60,000
Franchises 160,000
Patents 195,000
Selling Expenses 2,002,150
Administrative Expenses 904,180
Interest Expense 215,180
Gain 84,180
Totals $12,358,460 $12,358,460
b) Income Statement for the year ended December 31, 2020:
Sales $ 8,102,150
Cost of Goods Sold 4,800,000
Gross profit $3,302,150
Investment Revenue 67,180
Gain 84,180
Total Income before expenses $3,453,510
Selling Expenses 2,002,150
Administrative Expenses 904,180
Interest Expense 215,180
Total Expenses (3,121,510)
Net Income $332,000
Retained Earnings 82,440
Retained Earnings, December 31 $414,440