Presented below is the balance sheet for HHD, Inc., at December 31, 2024.
The captions shown in the summarized statement above include the following:
a. Current assets: cash, $150,000; accounts receivable (net), $200,000; inventory, $225,000; and prepaid insurance, $25,000.
b. Investments: investment in equity securities, short term, $90,000, and long term, $410,000.
c. Property, plant, and equipment: buildings, $1,500,000 less accumulated depreciation, $600,000; equipment, $500,000 less accumulated depreciation, $200,000; and land, $800,000.
d. Intangible assets net of amortization: patent, $110,000; and copyright, $90,000.
e. Current liabilities: accounts payable, $100,000; notes payable, short term, $150,000, and long term, $90,000; and income taxes payable, $60,000.
f. Long-term liabilities: bonds payable due 2026.
g. Shareholders’ equity: common stock, $1,000,000; retained earnings, $800,000. Five hundred thousand shares
of no par common stock are authorized, of which 200,000 shares were issued and are outstanding.
Required:
Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2024. Include headings for each classification, as well as titles for each classification’s subtotal. An example of a classified balance sheet can be found in the Concept Review Exercise at the end of Part A of this chapter.
