Presented below is the trial balance of Cullumber Corporation at December 31, 2020. Debit Credit
Cash $ 201,010
Sales $ 8,104,270
Debt Investments (trading) (at cost, $145,000) 157,270
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 303,010
Equity Investments (long-term) 281,010
Notes Payable (short-term) 94,270
Accounts Payable 459,270
Selling Expenses 2,004,270
Investment Revenue 65,700
Land 264,270
Buildings 1,044,010
Dividends Payable 140,010
Accrued Liabilities 100,270
Accounts Receivable 439,270
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 29,270
Administrative Expenses 902,700
Interest Expense 213,700
Inventory 601,010
Gain 82,700
Notes Payable (long-term) 904,010
Equipment 604,270
Bonds Payable 1,004,010
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,004,270
Treasury Stock 195,27
Patents 195,000
Retained Earnings 82,010
Paid-in Capital in Excess of Par 84,010
Totals $12,366,070 $12,366,070
Prepare a balance sheet at December 31, 2020, for Cullumber Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Total assets = Shareholders' Equity and Liabilities = $4,008,860

Explanation:

To prepare the balance sheet, the income statement is first prepared to determine the net income as follows:

Cullumber Corporation

Income Statement

For the Year ended December 31, 2020

Particulars                                                         $                

Sales                                                         8,104,270

Cost of Goods Sold                              (4,800,000)  

Gross profit                                             3,304,270

Operating expenses

Selling Expenses                                 (2,004,270)

Administrative Expenses                       (902,700)  

Operating income                                    397,300

Other income (expenses)

Interest Expense                                     (213,700)

Investment Revenue                                 65,700  

Net income                                             249,300  

The balance sheet can now be presented as follows:

Cullumber Corporation

Balance Sheet

As at December 31, 2020

Particulars                                                         $                         $             

Investments

Debt Investments (long-term)                  303,010  

Equity Investments (long-term)                281,010  

Total investments                                                                 584,020

Intangible Assets  

Franchises                                               160,000  

Patents                                                     195,000  

Total intangible assets                                                        355,000

Property, Plant and Equipment  

Land                                                         264,270  

Buildings                                                 1,044,010  

Accumulated Depreciation-Buildings   (152,000)

Equipment                                                604,270  

Accumulated Depreciation-Equip.        (60,000)  

Net Property, Plant and Equipment                                 1,700,550

Current Assets  

Cash                                                          201,010  

Debt Inv. (trading) (at cost, $145,000)     157,270  

Accounts Receivable                               439,270  

Allowance for Doubtful Accounts           (29,270)

Inventory                                                   601,010  

Total current assets                                                          1,369,290  

Total Assets                                                                     4,008,860  

Shareholders' Equity  

Common Stock ($5 par)                       1,004,270  

Treasury Stock                                      (195,270)

Gain                                                          82,700  

Retained Earnings                                    82,010  

Paid-in Capital in Excess of Par              84,010  

Net income                                            249,300  

Total Shareholders' Equity                                             1,307,020

Long-term Liabilities  

Notes Payable (long-term)                     904,010  

Bonds Payable                                     1,004,010  

Total Long-term Liabilities                                             1,908,020

Current Liabilities  

Notes Payable (short-term)                   94,270  

Accounts Payable                                459,270  

Dividends Payable                                140,010  

Accrued Liabilities                                100,270  

Total current liabilities                                                    793,820

Shareholders' Equity and Liabilities                         4,008,860

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