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As controller for Henderson, you are attempting to reconstruct and revise the following

balance sheet prepared by a staff accountant.

Henderson Manufacturing Company

Balance Sheet

At December $31,2021$

$($ $ in $000$ s $)$

Liabilities and Shareholders' Equity

Shareholders' equity:

Common stock

Retained earnings

Total liabilities and shareholders' equity

Additional information $(S$ in $000$s$)$:

Certain records that included the account balances for the franchise and shareholders'

equity items were lost. However, a complete, preliminary balance sheet prepared before

the records were lost showed a debt to equity ratio of $1\mathrm{.}5.$ That is$,$ total liabilities are

$150\%$ of total shareholders' equity. Retained earnings at the beginning of the year was

$$4,300.$ Net income for $2021$ was $$2,500,$ and $$800$ in cash dividends were declared and

paid to shareholders.

The investments represent treasury bills purchased in December $2021$ that mature in

January $2022.$ These are considered cash equivalents.

Interest on both the notes and the bonds is payable annually.

The notes payable account contains one note that is due in annual installments of $$800$

for each payment due.

Deferred revenue will be recognized equally over the next $18$ months.

The common stock represents $500,000$ shares of no par stock authorized, of which

$300,000$ shares are issued and outstanding.

Required:

Prepare a complete, corrected, classified balance sheet.

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