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act Questions 8-11 A bookkeeper, who was not familiar with proper accounting procedures, prepared the fol- lowing financial report for Largor Corporation as of December 31, 2015. In addition to the errors in presentation, additional data below was not considered in the preparation of the report. Restate this balance sheet in proper form, giving recognition to the additional data, so that you will be able to determine the required information to answer Questions 8 through 11. DIRECTIONS: Answer Questions 8 through 11 on the basis of the information given below. LARGOR CORPORATION December 31, 2015 $110,000 53,000 Current Assets Cash Marketable Securities Accounts Receivable Accounts Payable Inventories Prepaid Expenses Treasury Stock Cash Surrender Value of Officers' Life Insuranc Policies $261,400 125.000 136,400 274,000 24,000 20,000 $722,400 105,000 Plant Assets Equipment Building Reserve for Plant Expansion Land TOTAL ASSETS 350,000 200,000 75,000 125,000 47.500 522,500 $1,244,900

Answer 1

Part 8 should be solved after Current Assets have been restated as in the attached image

Date LARGOR CORPORATION e Parts Restatement of current Assets Accounts Receivable 261400) Add: Adrances from customed 13600 allready deducted 275000 Less Reserve for Doubtful 8500 268500 Inventaries 274000 Prepaid Expenses 2400o| Lossi Unamortized 15000 - mortgage costs 9000 Marketable becurities s3ood Less: Mark to Market 2200 50800. Cash 110.000 712300 fes scan therefore it is Option e-712300 CamScanner

Part 9 Should be answered as given in the Image Attached below

parta Restatement of current liabilities Current liabilities Accounts Payable 125000 125000 Adrances from customers 13600 Cash Dividend payable 50,00 Stock Dividend payable 7Q000 Salaries Payable 16,500 Reserre for Treasury Stake 20,000 295,100 e Therefore option C is light $295,200 CamScanner

Part 10 Should be answered as given in the Image Attached below

Parutio Restatement of Plant & Equipment Plant Assets Equipment 350.0001 As: feo-go КОИ 10,000 280,000 Buitching 200,000 Less: Depreciation Socce 120,000 land Non Deprecable) [47500 hesa Depreciation - NIL 47500 447,500 Hence the correct option is B a cs Scan $447,500 Scan CamScanner