The following balance sheet was prepared by the bookkeepers for Brown Company as of December
Brown Company
Balance sheet
As of December 31, 2007
Cash 80000
Account receivable (net) $42000
Inventory 57000
Investment 76,300
Equipment (net) 96000
Patents (32,000)
Total 383,500
Account payable $75000
Long term liability 100,000
Stockholder’s equity 208,500
383,500
The following additional information is provided:
1. Cash includes the cash surrender value of a life insurance policy 5000, and a bank overdraft of 2,500 has been deducted
2. the net accounts receivable balance includes:
a. account receivable-debit balances 50,000
b. account receivable- credit balance 4000
c. allowance for doubtful accounts 3,800
3. Inventories do not include goods costing 3000 shipped out on consignment. Receivable of 3000was recorded on these goods.
4. Investment includes investment in common stock, trading 13000 and available for sale 48,300 and franchise 15000.
5. Equipment costing with accumulated depreciation 4000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is 40,000
Instruction:
Instruction:
Prepare a balance sheet in good form (stockholders equity details can be omitted).
CLICK HERE FOR SOLUTION
