Balance Sheet Project -
Account balances at 12/31/2010:
|
|
Debit
|
Credit
|
|
Cash
|
$50,000
|
|
|
Accounts Receivable, net
|
38,500
|
|
|
Inventories
|
65,300
|
|
|
Equipment, net
|
104,000
|
|
|
Patents
|
20,000
|
|
|
Notes and Accounts Payable
|
|
$52,000
|
|
Long-term Liabilities
|
|
100,000
|
|
Stockholders' Equity
|
|
125,800
|
|
|
$277,800
|
$277,800
|
Except for the following items, all adjustments have been recorded in the accounts.
1. Cash includes $200 petty cash and $20,000 in a fund designated for plant expansion in 2012.
2. The net accounts receivable is comprised of: (a) accounts receivable $52,000, and (b) allowance for doubtful accounts $13,500.
3. Equipment had a cost of $132,000 and accumulated depreciation of $28,000.
4. Notes and Accounts Payable is comprised of the following: Accounts Payable $32,000; Taxes Payable $3,000; Note Payable $17,000, due June 30, 2012.
5. Long-term liabilities are 10-year bonds paying interest at 9% maturing June 30, 2021.
6. Stockholders' Equity is comprised of: Common Stock ($1 par) $50,000; Additional Paid-in Capital $55,000; and Retained Earnings of $20,800.
Additional Information:
1. Name of Firm: FMB Inc.
2. Headquarters: Taos, New Mexico
3. Business: Manufactures computer chips
4. Operating Year: Calendar Year (2011)
5. Sales $210,000; EBIT $14,000; MV of Equity $225,000.
Requirements: Prepare classified balance sheet (to be audited) and notes (if necessary).