Complete the balance sheet A partially completed balance sheet for Blue Co., Inc., as of January 31, 2011, follows. Where amounts are shown for various items, the amounts are correct.
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Assets
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Liabilities and Owners' Equity
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Cash
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$ 700
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Note payable
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$________
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Accounts receivable
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________
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Accounts payable
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3,400
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Land
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________
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Automobile
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________
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Total liabilities
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$________
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Less: Accumulated
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Owners' equity
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depreciation
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________
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Common stock
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$ 8,000
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Retained earnings
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Total owners' equity
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$________
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Total assets
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$________
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Total liabilities + owners' equity
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$________
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Required:
Using the following data, complete the balance sheet.
a. Blue Co.'s records show that current and former customers owe the firm a total of $4,000; $600 of this amount has been due for more than a year from two customers who are now bankrupt.
b. The automobile, which is still being used in the business, cost $18,000 new; a used car dealer's Blue Book shows that it is now worth $10,000.
Management estimates that the car has been used for one-third of its total potential use.
c. The land cost Blue Co. $11,000; it was recently assessed for real estate tax purposes at a value of $15,000.
d. Blue Co.'s president isn't sure of the amount of the note payable, but he does know that he signed a note.
e. Since Blue Co. was formed, net income has totaled $33,000, and dividends to stockholders have totaled $19,500.