preparation of a corrected balance sheet the balance sheet of kish waukee corporati 1574520

(Preparation of a Corrected Balance Sheet) The balance sheet of Kish waukee Corporation as of December 31, 2014, is as follows.

 

Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of appraisal value over cost was $570,000. Depreciation has been recorded based on cost.

Note 2: Goodwill in the amount of $120,000 was recognized because the company believed that book value was not an accurate representation of the fair value of the company. The gain of $120,000 was credited to Retained Earnings.

Note 3: Notes payable are long-term except for the current installment due of $100,000.

Instructions

Prepare a corrected classified balance sheet in good form. The notes above are for information only.