(TCO D) The following balance sheet was prepared by the bookkeeper for Stripes C
ID: 2458358 • Letter: #
Question
(TCO D) The following balance sheet was prepared by the bookkeeper for Stripes Company as of December 31, 201X Stripes Company Balance Sheet as of December 31, 201X is as follows. Cash $ 80,000 Accounts payable $ 75,000 Accounts receivable (net) 52,200 Long-term liabilities 100,000 Inventories 57,000 Stockholders' equity 218,500 Investments 76,300 Equipment (net) 96,000 Patents $393,500 $393,500 The following additional information is provided: (1) Cash includes the cash surrender value of a life insurance policy $12,000 and a bank overdraft of $2,500 has been deducted. (2) The net accounts receivable balance includes: (a) accounts receivable debit balances $60,000; (b) accounts receivable 0; and (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, available-for-sale $48,300, and franchises $15,000. (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. (6) An unrecorded liability was not recorded on the balance sheet of $2,000. Instructions . Instructions: Prepare a balance sheet in good form (stockholders' equity details can be omitted).
Explanation / Answer
Balance Sheet
Working: Cash = 80,000 - 12,000 = 68,000
Inventory = 57,000 + 3,000 (Consignment)
Amount($) Amount($) ASSETS: Current Assets: Cash 68,000 Investment: Surrender Value of Life Insurance Policy 12,000 Trading Securities 13,000 25,000 Account Receivable- Gross 57,000 Less: Allowance for Doubtful Debts 3,800 Account Receivable - Net 53,200 Inventories 60,000 Equipment held for sale 5,000 Less: Accumulated Depreciation 4,000 1,000 Current Assets 207,200 Long Term Investment Available for Sale Securities 48,300 Property Plant & Equipment Equipment 136,000 Less: Accumulated Depreciation 40,000 96,000 Intangible Assets: Patent 31,500 Franchises 15,000 46,500 Total Assets 398,000 LIABILITIES & STOCKHOLDER'S EQUITY Current Liabiliites Account Payable 75,000 Bank Overdraft 2,500 Unrecorded Liability 2,000 Total Current Liabilities 79,500 Long Term Liabilities 100,000 Total Liabilities 179,500 Stockholder's Equity 218,500 Total Liabilities and Stockholder's Equity 398,000Related Questions
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