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Russell Company

Price: $3.50

The adjusted trial balance of Russell Company and other related information for the year 2012 are presented below.

Adjusted Trial Balance
December 31, 2012

Cash  41,310
Accounts receivable  162,457
Allowance for doubtful accounts  8,845
Prepaid insurance  5,578
Inventory  208,880
Equity Investments (long term)  336,870
Land  84,750
Construction in process  141,000
Patents  40,500
Equipment  401,250
Accumulated Depreciation - Equipment  241,150
Discount on bonds payable  19,860
Accounts payable  150,314
Accrued expenses  47,754
Notes payable  93,300
Bonds payable  198,600
Common stock  488,000
Paid in capital in excess of Par- Common stock  43,920
Retained Earnings    170,572
   1,442,455  1,442,455

Additional information:
1. The LIFO method of inventory value is used
2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same.

3. The amount of the Construction in Process account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $84,750, as shown in the trial balance.

4. The patents were purchased by the company at a cost of $45,000 and are being amortized on a straight-line basis.

5. Of the discount on bonds payable, $1,986 will be amortized in 2013.
6. The notes payable represent bank loans that are secured by long-term investments carried at $118,400. These bank loans are due in 2013.

7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2023.

8. 588,000 shares of common stock of a par value of $1 were authorized, of which 488,000 shares were issued and outstanding.

Prepare a balance sheet as of December 31, 2012, so that all important information is fully disclosed.

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