P12-6a. the following data, presented in alphabetical order, are taken from the records of nieto corporation.

accounts payable $260,000

accounts receivable $140,000

accumulated depreciation- buildings $180,000

accumulated deprecation-equipment $52,000

allowance for doubtful accounts $6,000

bonds payable (10% due 2023) $500,000

building $950,000

cash $62,000

common stock

($10 par value; 500,000 shares authorized, 150,00 shares issued) $1,500,000

dividends payable $80,000

equipment $275,000

fair value adjustment-available –for-sale securities (dr) $8,000

goodwill $200,000

income taxes payable $120,000

inventory $170,000

investment in mara common stock (30% ownership) at equity $380,000

investment in sasse common stock (10% ownership), at cost $278,000

land $390,000

notes payable (due 2016) $70,000

paid –in capital in excess of par- common stock $130,000

premium on bonds payable $40,000

prepaid insurance $16,000

retained earnings $103,000

short-term investments, at fair value (and cost) $180,000

unrealized gain—available-for-sale-securities $8,000

the investment in sasse common stock is considered to be a long-term available-for-sale security.

instructions

prepare a classi? ed balance sheet at december 31, 2015.

Answer and Explanation:

                                     Nieto Corporation

                                        Balance Sheet

                                      December 31, 2015

Current Assets:

Cash                                                                 $62,000

Account Receivable    $140,000

Less: Allowance for

doubtful accounts         $6,000                       $134,000

Prepaid Insurance                                               16,000

Short-term investments                                     180,000

Inventory                                                            170,000

Total Current Assets                                                                    $562,000

Fixed Assets

Equipment                         275,000

Less: Acc. Dep.                  52,000                     223,000

Building                              950,000

Less: Dep.                          180,000                    770,000

Land                                                                     390,000

Investments

(Mara + Sasse)                                                      658,000      

Goodwill                                                               200,000         $2,241,000

Total Assets                                                                                $2,803,000                        

Current Liabilities

Accounts payable                                            $260,000  

Income taxes payable                                         120,000    

Dividend payable                                            $80,000  

Notes payable                                                  70,000  

Premium on bonds payable                                   40,000  

Total Current liabilities                                                                   $570,000

Long-term liabilities

Bonds payable                                       $500,000          500,000

Total liabilities                                                            $1,070,000

Equity

Capital stock                                               $1,500,000  

Paid-in capital in

excess of par common stock                        130,000  

Retained earnings                                          $103,000         1,733,000

Total liability and stockholders' equity                        $2,803,000

answer; /// i believe the correct answer is ( column break);

correct, but each time you dont pay the price of the penalty can increase.