Arrange the following items in proper balance sheet presentation. Accumulated de

ID: 2666989 • Letter: A

Question

Arrange the following items in proper balance sheet presentation.

Accumulated depreciation $200,000
Retained earnings 110,000
Cash 5,000
Bonds payable 142,000
Accounts receivable 38,000
Plant and equipment-original cost 720,000
Accounts payable 35,000
Allowance for bad debts 6,000
Common stock $1 par, 150,000 shares outstanding 150,000
Inventory 66,000
Preferred stock, $50 par, 1,000 shares outstanding 50,000
Marketable securities 15,000
Investments 20,000
Notes payable 83,000
Capital paid in excess of par (common stock) 88,000

Explanation / Answer

Liabilities

Assets

Current liabilities

Current assets

Bonds payable

142,000

Cash

5,000

Accounts payable

35,000

Accounts receivable

38,000

Notes payable

83,000

Less: Allowance for bad debts

6,000

32,000

Marketable securities

15,000

owners equity

Inventory

66,000

Retained earnings

110,000

long term assets

Common stock

150,000

Plant and equipment

720,000

Capital paid in excess

88,000

Accumulated depreciation

$200,000

238,000

520,000

Preferred stock

50,000

Investments

20,000

658,000