E5-12 (L03) (Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December 31, 2017.

Particular	Debit	Credit
Cash	\(197,000
Sales Revenue		\)8,100,000
Debt investment (trading) (at cost \(145,000)	153,000
Cost of goods sold	4,800,000
Debt investment (long-term)	299,000
Equity Investment (long-term)	277,000
Notes payable (Short-term)		90,000
Account payable		455,000
Selling expenses	2,000,000
Investment revenue		63,000
Land	260,000
Buildings	1,040,000
Dividend payable		136,000
Accrued Liabilities		96,000
Accounts Receivable	435,000
Accumulated depreciation – Building		152,000
Allowance for doubtful accounts		25,000
Administrative expenses	900,000
Interest expenses	211,000
Inventory	597,000
Gain		80,000
Notes payable		900,000
Equipment	600,000
Bonds payable		1,000,000
Accumulated depreciation – Equipment		60,000
Franchises	160,000
Common stock		1,000,000
Treasury stock	191,000
Patents	195,000
Retained Earnings		78,000
Paid-in-capital in excess of par		80,0000
Total	\)12,315,000	$12,315,000

Instructions Prepare a balance sheet at December 31, 2017, for Scott Butler Corporation. (Ignore income taxes.)

Particular

Amount $

Amount $

Assets

Current assets

Cash

$197,000

Debt investment (trading) (at cost $145,000)

153,000

Accounts Receivable

435,000

Less: Allowance for doubtful accounts

(25,000)

410,000

Inventory

597,000

Property, Plant, and Equipment

Land

260,000

Buildings

1,040,000

Less: Accumulated depreciation – Building

(152,000)

888,000

Equipment

600,000

Less: Accumulated depreciation – Equipment

(60,000)

540,000

Long-term Investment

Debt investment (long-term)

299,000

Equity Investment (long-term)

277,000

Intangible assets

Franchises

160,000

Patents

195,000

Total assets

3,976,000

Liabilities

Current liabilities

Dividend payable

136,000

Accrued Liabilities

96,000

Notes payable (Short-term)

90,000

Account payable

455,000

Non-Current liabilities

Notes payable

900,000

Bonds payable

1,000,000

Total liabilities

2,677,000

Equity

Common stock

1,000,000

Paid-in-capital in excess of par

80,000

Treasury stock

(191,000)

Reserve and surplus

Retained Earnings (332,000 + 78,000)

410,000

Total liabilities and Equity

$3,976,000

Particular

Amount $

Sales Revenue

$8,100,000

Less: Cost of goods sold

(4,800,000)

Gross profit

3,300,000

Less: Other expenses

Selling expenses

(2,000,000)

Administrative expenses

(900,000)

Interest expenses

(211,000)

Net Operating income

189,000

Add: Gains

80,000

Add: Investment revenue

63,000

Total income

$332,000