ID: MC110201011

Name: Abbas Muhammad

Solution:

Haider Corporation Company Ltd.

31 December 2018

Assets
Current Assets:
Cash (including Rs. 20,000 restricted for notes payable) 80,000
Marketable securities 30,000
Accounts Receivables, less allowance for doubtful accounts 95,000
of Rs. 12,000
Inventory 75,000
Total Current Assets 280,000

Plant Assets/Fixed Assets:

Tangible Asset

Land 200,000
Building, net 100,000
Equipment 120,000
Less: Accumulated Depreciation 20,000 100,000
Patent Note 1
Organizational Costs Note 2

Intangible Asset

Patent Note 1

Total Plant Assets 400,000

Other Assets:
Prepaid Insurance 30,000
Total Assets 750,000
Liabilities & Stockholders' Equity Current Liabilities:
Accounts Payable 90,000
Wages Payable 30,000
Notes Payable, due July, 2020 28,000 Bonds Payable, due December 2025 150,000
Total Current Liabilities 298,000
 Dividend Payable
Deferred Tax Liability, Long Term 80,000
77,000
Stockholders' Equity Common Stock (Rs, 10 par, 50,000 shares authorized, 20,000
shares outstanding 200,000
Retained Earnings 95,000
Total Stockholders' Equity 295,000
Total Liabilities and Stockholders' Equity 750,

Note 2
are costs incurred in organizing a business. Examples of organization costs include legal fees,
costs of printing stock certificates, incorporation and underwriting fees, and promotional fees. In
accordance with GAAP, organization costs are expensed when incurred, and therefore, they do
not appear on the balance sheet (i.e., are expensed rather than capitalized).