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$($Balance Sheet Adjustment and Preparation$)$ Presented below is the balance sheet of Sargent Corporation for the current year, $2025$

Sargent Corporation Balance Sheet December $31,2025$

Current assets Investments

Property, plant, and equipment Intangible assets

$ $485,000$ Current liabilities $640,000$ Long$-$term liabilities

$1,720,000305,000$

$$3,150,000$

The following information is presented. $1.$ The current assets section includes cash $$150,000,$ accounts receivable $$170,000$ less $$10,000$ for allowance for doubtful accounts, inventories $$180,000,$ and unearned rent revenue $$5,000.$ Inventory is stated on the lower$-$of$-$FIFO$-$cost$-$or$-$net realizable value.

$2.$ The investments section includes the cash surrender value of a life insurance contract $$40,000$; investments in common stock, short$-$term $$80,000$ and long$-$term $$270,000$; and bond sinking fund $$250,000.$ The cost and fair value of investments in common stock are the same.

$3.$ Property, plant, and equipment includes buildings $$1,040,000$ less accumulated depreciation $$360,000,$ equipment $$450,000$ less accumulated depreciation $$180,000,$ land $$500,000,$ and land held for future use $$270,000.$

$4.$ Intangible assets include a franchise $$165,000,$ goodwill $$100,000,$ and discount on bonds payable $$40,000.$

$5.$ Current liabilities include accounts payable $$140,000,$ notes payable$$short$-$term $$80,000$ and long$-$term $$120,000,$ and income taxes payable $$40,000.$

$6.$ Long$-$term liabilities are composed solely of $7\%$ bonds payable due $2033.7.$ Stockholders$$ equity has preferred stock, no par value, authorized $200,000$ shares, issued $70,000$ shares for $$450,000$; and common stock, $$1$ par value, authorized $400,000$ shares, issued $100,000$ shares at an average price of $$10.$ In addition, the corporation has retained earnings of $$320,000.$

Instructions

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above.

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