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Bruno

Price: $2.50


Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.

BRUNO COMPANY
BALANCE SHEET
31-Dec-12
Current assets 
Cash   260,000
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)   570,000
Office equipment (net)   160,000
Land held for future use   175,000
Intangible assets 
Goodwill   80,000
Cash surrender value of life insurance   90,000
Prepaid expenses   12,000
Current liabilities 
Accounts payable   135,000
Notes payable (due next year)   125,000
Pension obligation   82,000
Rent payable   49,000
Premium on bonds payable   53,000
Long-term liabilities 
Bonds payable   500,000
StockholdersĂ• equity 
Common stock, $1.00 par, authorized 
400,000 shares, issued 290,000   290,000
Additional paid-in capital   180,000
Retained earnings   ?  

Instructions
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.

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