Question - The following balance sheet was prepared by the bookkeeper for Stripes Company as of December 31, 201X Stripes Company Balance Sheet as of December 31, 201X is as follows.
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Cash
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$ 80,000
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Accounts payable
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$ 75,000
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Accounts receivable (net)
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52,200
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Long-term liabilities
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100,000
|
|
Inventories
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57,000
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Stockholders' equity
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218,500
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Investments
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76,300
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|
|
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Equipment (net)
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96,000
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|
|
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Patents
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|
|
|
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$393,500
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$393,500
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The following additional information is provided.
(1) Cash includes the cash surrender value of a life insurance policy $12,000 and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes
(a) accounts receivable debit balances $58,000;
(b) accounts receivable $2,000; and
(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, available-for-sale $48,300, and franchises $15,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions: Prepare a balance sheet in good form?