| The Boulton Corportation | ||||||
| Balance Sheet | ||||||
| December 31, 2005 | ||||||
| Assets | ||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$1,750 | |||||
Temporary Investments (lower of cost and
market) |
25,000 | |||||
Accounts Receivable |
$35,880 | |||||
Less: Allowance for Doubtful Accounts |
(1,600) | 34,280 | ||||
Notes Receivable |
30,000 | |||||
Less: Allowance for Doubtful Notes |
(2,400) | 27,600 | ||||
Merchandise Inventory (lower of cost and
market) |
2,500 | |||||
Supplies |
1,350 | |||||
Prepaid Insurance |
1,900 | |||||
Total Current
Assets |
$94,380 | |||||
INVESTMENTS |
||||||
Debt Invstments (long term) |
$100,000 | |||||
Equity Investments, Cost Method (<20%
ownership) |
40,000 | |||||
Equity Investments, Equity Method (>20%
ownership) |
35,000 | |||||
Total Long-Term Investments |
175,000 | |||||
FIXED ASSETS |
||||||
Land |
$134,000 | |||||
Building |
$250,000 | |||||
Less: Accumulated Amortization |
(40,000) | 210,000 | ||||
Equipment |
85,770 | |||||
Less: Accumulated Amortization |
(7,500) | 78,270 | ||||
Patents, net of amortization |
80,000 | |||||
Automobiles |
43,350 | |||||
Less: Accumulated Amortization |
(10,000) | 33,350 | ||||
Total Fixed Assets |
535,620 | |||||
TOTAL ASSETS |
$805,000 | |||||
| Liabilities and Shareholder's Equity | ||||||
CURRENT LIABILITIES |
||||||
Accounts Payable |
$9,096 | |||||
Salaries and Wages Payable |
5,000 | |||||
Bond Interest Payable |
6,300 | |||||
Income Tax Payble |
48,000 | |||||
HST Payable |
$1,393 | |||||
Less: HST Recoverable |
(279) | 1,114 | ||||
Current Portion of Mortgage Payable |
4,500 | |||||
Bank Loan (matures 18 months) |
5,000 | |||||
Total Current Liabilities |
$79,010 | |||||
LONG-TERM LIABILITIES |
||||||
Bank Loan (matures 3 years) |
$25,000 | |||||
Bonds Payable, 7% due 2011 |
$90,000 | |||||
Less: Bond Discount |
(5,000) | 85,000 | ||||
Mortgage Payable, net of current portion |
150,000 | |||||
Total Long-Term Liabilities |
260,000 | |||||
SHAREHOLDER'S EQUITY |
||||||
Contributed Capital |
||||||
(Share Capital) |
||||||
$10
Preferred shares, no par value, cumulative, (10,000 authorized, 1,000
issued) |
$50,000 | |||||
Common
Shares, $3 stated value, (unlimited shares authorized, 50,000 shares issued) |
150,000 | |||||
Total Share Capital |
$200,000 | |||||
(Additional Contributed Capital) |
||||||
Contributed Capital in excess of stated
value - Common Shares |
60,000 | |||||
Total Contributed Capital |
260,000 | |||||
Retained Earnings (full version) |
||||||
Beginning Balance, January 1, as previously
reported |
$102,700 | |||||
Less:
Correction of overstatement of Net Income due to unrecorded sales in prior
period, |
||||||
net
of $4,000 income tax expense |
$(8,000) | |||||
Add:
Cumulative effect of a change in accounting principle, completed-contract
method to |
||||||
percentage-of-completion method, net of
$20,000 income tax expense. |
40,090 | 32,090 | ||||
Retained
Earnings January 1, as adjusted |
134,790 | |||||
Add: Net Income |
241,200 | |||||
Less: Preferred Dividends |
(50,000) | |||||
Less: Common Dividends |
(100,000) | |||||
Less: Stock Dividends |
(20,000) | |||||
Net change in Retained Earnings for the
period |
71,200 | |||||
Retained Earnings December 31 |
205,990 | |||||
TOTAL
LIABILITIES AND SHAREHOLDER'S EQUITY |
$805,000 | |||||