The following balance sheet was prepared by the bookkeeper for Blue Company as o
ID: 2458382 • Letter: T
Question
The following balance sheet was prepared by the bookkeeper for Blue Company as of December 31, 2011
Blue Company
Balance Sheet
as of December 31, 2011
Cash $ 90,000 Accounts payable $ 75,000
Accounts receivable (net) 42,200 Long-term liabilities 100,000 Inventories 57,000 Stockholders' equity 218,500
Investments 76,300
Equipment (net) 96,000
Patents 32,000
$393,500 $393,500
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $5,000, and a bank overdraft of $4,000 has been deducted. (2)The net accounts receivable balance includes:
(a)accounts receivable debit balances $50,000;
(b)accounts receivable credit balances $0;
(c)allowance for doubtful accounts $3,800.
(3)Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4)Investments include investments in common stock, trading $13,000 and available-for-sale $46,300, and franchises $17,000. (5)Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions
Prepare a balance sheet in good form (stockholders' equity details can be omitted.)
Do not worry about balancing the statement but rather use your time to compute the account balances properly for presentation purposes.
Read more: http://www.justanswer.com/homework/3xdtd-balance-sheet-prepared-bookkeeper-blue-company.html#ixzz3uoyESy99
Explanation / Answer
BALANCE SHEET December 31,2000 Liabilities Amount Assets Amount Accounts Payable 75000 Cash 90000 Long Term Liabilities 100000 Account Receivable 42000 Shareholder Equity 218500 Inventory 57000 Investments 76300 Equipments 96000 Patents 32000 393500 393300 Main Solution BALANCE SHEET December 31,2000 Liabilities Amount Assets Amount Accounts Payable 75000 Cash 85000 Long Term Liabilities 100000 Account Receivable 45800 Less: Provision for Doubtful Debts 3800 42000 Shareholder Equity 205300 Inventory 54000 (Balancing Figure) Investments 76300 Equipments 131000 Less: Accumalated Depreciation 40000 91000 Patents 32000 380300 380300 Note: Difference in the Balance Sheet due to adjustments has been adjusted in shareholders equity.
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