The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets Buildings $ 753,000
Land 259,000
Cash 63,000
Accounts receivable (net) 126,000
Inventory 246,000
Machinery 283,000
Patent (net) 103,000
Investment in equity securities 66,000
Total assets $ 1,899,000
Liabilities and Shareholders' Equity Accounts payable $ 218,000
Accumulated depreciation 258,000
Notes payable 506,000
Appreciation of inventory 83,000
Common stock (authorized and issued 103,000 shares of no par stock) 412,000
Retained earnings 422,000
Total liabilities and shareholders' equity $ 1,899,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $53,000 but, due to a significant increase in market value, is listed at $126,000. The increase in the land account was credited to retained earnings.
2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $23,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long term. However, a $130,000 note requires an installment payment of $32,500 due in the coming year.
4. Inventory is recorded at current resale value. The original cost of the inventory is $163,000.
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2021.

    HUBBARD CORPORATION

             Balance Sheet

        At December 31, 2021

Assets

Current assets:

Cash $63,000

Accounts receivable (net) $126,000

Inventory $163,000

Short term investments - AFS securities $23,000

Total current assets: $375,000

Investment in equity securities $43,000

Patent (net) $103,000

Machinery $283,000

Assets Buildings $753,000

Accumulated depreciation ($258,000)

Land $186,000

Total assets $1,485,000

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable $218,000

Current portion of long term debt $32,500

Total current liabilities: $250,500

Notes payable 473,500

Common stock (authorized and issued 103,000 shares of no par stock) $412,000

Retained earnings $349,000

Total liabilities and shareholders' equity $1,485,000

Explanation:

1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $53,000 but, due to a significant increase in market value, is listed at $126,000. The increase in the land account was credited to retained earnings.

Dr Retained earnings 73,000

    Cr Land 73,000

Assets must be reported at historical cost.

2. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $23,000 of which will be sold in the coming year. The remainder will be held indefinitely.

Dr Short term investments - AFS securities 23,000

    Cr Investment in securities 23,000

It doesn't change the value of the assets, it just organizes them properly.

3. Notes payable are all long term. However, a $130,000 note requires an installment payment of $32,500 due in the coming year.

Dr Notes payable 32,500

    Cr Current portion of long term debt 32,500

4. Inventory is recorded at current resale value. The original cost of the inventory is $163,000.

Dr Inventory change 83,000

    Cr Inventory 83,000

Inventory must be recorded at lesser of cost or market value.