Problem - The following incorrect Balance Sheet was prepared for Browning Corporation as of December 31, 2016.
Browning Corporation Balance Sheet as of December 31, 2016
|
Cash
|
$80,000
|
Accounts payable
|
$75,000
|
Accounts receivable (net)
|
52,200
|
Bonds payable
|
100,000
|
Inventory
|
57,000
|
Common Stock
|
218,500
|
Investments
|
76,300
|
|
|
Equipment (net)
|
96,000
|
|
|
Copyrights
|
32,000
|
|
|
Total Assets
|
$393,500
|
Total Liabilities & Stockholder's Equity
|
$393,500
|
Additional information:
1. Browning has $3,000 of inventory out on consignment, which is not included in the Inventory account balance, however $3,000 was recorded as an Account Receivable.
2. Browning is trying to sell a piece of equipment it no longer uses. The equipment has a book value of $1,000.
3. The remaining equipment on Browning's ledger has a $40,000 balance in Accumulated Depreciation.
4. Browning Corporation has key-man insurance with a cash surrender value of $9,400, which is included in the balance of the Cash account.
5. A bank overdraft of $2,500 has been deducted from the Cash account.
Required: Prepare a corrected Balance Sheet in report form.
Attachment:- Assignment.rar