Exercise b-6 The bookkeeper for Wildhorse has prepared the following balance she
ID: 2337362 • Letter: E
Question
Exercise b-6 The bookkeeper for Wildhorse has prepared the following balance sheet as of July 31, 2017 WILDHORSE COMPANY BALANCE SHEET AS OF JULY 31, 2017 Cash 46,520 7,520 158,020 Inventory Equipment (net) Patents 43,020 Long-term kabaties 62,520 Stockholders' equity 84,000 21,000 $282,060 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $12,390 in a bond sinking fund 2. The net accounts receivable balance is compised of the following two items: (a) accounts receivable $46,520 and (b) allowance for doubtful accounts $3,500. 3. Inventory costing $5,601 was shipped out on consignment on July 31, 2017. The endng inventory balance does not indlude the consigned goods. Receivables in the amount of $5,601 were recognized on these consigned goods 4. Equipment had a cost of $114,520 and an accumulated depreciation balance of $30,520. e taxes payable of $6,000 were accrued on July 31. Widhorse Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the income taxes payable amount. Prepire·corect ed ed balance sheet as a ty 31 017 from the avalable information, adjusting the account balances using the add ti nal information. List Current Assets in ass WILDHORSE COMP
Explanation / Answer
WILDHORSE COMPANY
Balance Sheet
As of July 31, 2017
Assets;
Current Assets:
Cash ($71520 - $12390 + $6000)
$65130
Accounts Receivable ($46520 - $5601)
$40919
Less: Allowance for doubtful account
($3500)
$37419
Inventories ($62520 + $5601)
$68121
Total current assets
$170670
Long-term Investment :
Bond Sinking Fund
$12390
Property, Plant and Equipment:
Equipment
$114520
Less: Acc. Depreciation-Equipment
($30520)
$84000
$84000
Intangible Assets;
Patent
$21000
Total assets
$288060
Liabilities and Stockholders’ equity;
Current liabilities:
Notes and account payable
$46520
Taxes payable
$6000
Total current liabilities
$52520
Long-term liabilities
$77520
Total liabilities
$130040
Stockholders’ equity
$158020
Total liabilities and stockholders’ equity
$288060
WILDHORSE COMPANY
Balance Sheet
As of July 31, 2017
Assets;
Current Assets:
Cash ($71520 - $12390 + $6000)
$65130
Accounts Receivable ($46520 - $5601)
$40919
Less: Allowance for doubtful account
($3500)
$37419
Inventories ($62520 + $5601)
$68121
Total current assets
$170670
Long-term Investment :
Bond Sinking Fund
$12390
Property, Plant and Equipment:
Equipment
$114520
Less: Acc. Depreciation-Equipment
($30520)
$84000
$84000
Intangible Assets;
Patent
$21000
Total assets
$288060
Liabilities and Stockholders’ equity;
Current liabilities:
Notes and account payable
$46520
Taxes payable
$6000
Total current liabilities
$52520
Long-term liabilities
$77520
Total liabilities
$130040
Stockholders’ equity
$158020
Total liabilities and stockholders’ equity
$288060
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