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 receivable (net) 42,000
Inventories 57,000
Equipment (net) 96,000
Patents 32,000
Sub-Total 393,500
Accounts payable 75,000
Long-term liabilities 100,000
Stockholders' equity 218,500
Sub-Total 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
INSTRUCTIONS
Prepare a balance sheet in good form (Stockholders' equity details can be omitted)
Do not worry about balancing the statement but rather compute the account balances properly for presentation purposes.
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