Bruno Company has decided to expand its operations. The bookkeeper
recently completed the balance sheet presented below in order to obtain
s for expansion.
December 31, 2010
Accounts Receivable (net) 340,000
Inventories at lower of average cost or market 401,000
Trading securities – at cost (fair value $120,000) 140,000
Property, plant and equipment
Building (net) 609,000
Office equipment (net) 160,000
Land held for future use 175,000
Cash surrender value of life insurance 90,000
Prepaid expenses 12,000
Accounts payable 155,000
Notes payable (due next year) 175,000
Pension obligation 102,000
Rent payable 49,000
Premium on bonds payable 53,000
Bonds payable 550,000
Common stock, $1.00 par, authorized
400,000 shares, issued 290,000 290,000
Additional paid-in capital 240,000
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 office equipment, $105,000. The allowance for
doubtful accounts has a balance of $17,000. The pension obligation is
considered a long-term liability.