Question Description

I need help with a Accounting question. All explanations and answers will be used to help me learn.

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings$766,000
Land298,000
Cash76,000
Accounts receivable (net)152,000
Inventory272,000
Machinery296,000
Patent (net)116,000
Investment in equity securities92,000
Total assets$2,068,000
Liabilities and Shareholders’ Equity
Accounts payable$231,000
Accumulated depreciation271,000
Notes payable532,000
Appreciation of inventory96,000
Common stock (authorized and issued
116,000 shares of no par stock)
464,000
Retained earnings474,000
Total liabilities and shareholders’ equity$2,068,000


Additional information:

  1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $66,000 but, due to a significant increase in market value, is listed at $152,000. The increase in the land account was credited to retained earnings.
  2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $36,000 of which will be sold in the coming year. The remainder will be held indefinitely.
  3. Notes payable are all long term. However, a $260,000 note requires an installment payment of $65,000 due in the coming year.
  4. Inventory is recorded at current resale value. The original cost of the inventory is $176,000.


Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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