Question

The bookkeeper for Kingbird Company has prepared the following balance sheet as of July 31, 2017 KINGBIRD COMPANY BALANCE SHEET AS OF JULY 31, 2017 $ 48,440 79,440 159,940 $287,820 $ 73,440 Notes and accounts payable Accounts receivable (net) Inventory Equipment (net) Patents 44,940 Long-term liabilities 64,440 Stockholders' equity 84,000 21,000 $287,820 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $11,820 in a bond sinking fund. 2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $48,440 and (b) allowance for doubtful accounts $3,500. 3. Inventory costing $5,389 was shipped out on consignment on July 31, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,389 were recognized on these consigned goods. 4. Equipment had a cost of $116,440 and an accumulated depreciation balance of $32,440. 5. Income taxes payable of $6,000 were accrued on July 31. Kingbird Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the income taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2017, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity)

Answer 1

Balance Sheet
Assets		Amt	Liabilities & Stockholder Equity
Cash (73440-11820+6000)		$67,620.00	Notes & Accounst Payable		$48,440.00
Accounts Receivable (48440-5389)	$43,051.00		Income Tax Payable		$6,000.00
Less:Allowance for Doubtful debts	$3,500.00	$39,551.00	Long term Liabilities		$79,440.00
Inventory (64440+5389)		$69,829.00	Common stock	$1,05,000.00
Bond Sinking Fund		$11,820.00	Retained Eranings	$50,500.00	$1,59,940.00
Equipment	$1,16,440.00
Less: Accumulated Depreciation	$32,440.00	$84,000.00
Patents		$21,000.00
Total Assets		$2,93,820.00			$2,93,820.00