Question

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 $4,300; $630 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 $15,000 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 $31,000, and dividends to stockholders have totaled $22,000. Blue Co., Inc. Balance Sheet October 31, 2013 Liabilities and Stockholders' Equity $ 750 Note payable Accounts payable Total liabilities Assets Cash Accounts receivable Land Automobile Less: Accumulated Depreciation 3,650 Stockholders' Equity 6,000 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Total assets

Answer 1

Solution: Assets Cash Accounts receivable=4300-630 land automobile less:accumulated depreciation Blue Co., Inc. Balance Sheet October 31,2013 Liabilities and stockholders' equity 750 note payable=25420-15000-3650 3670 accounts payable 11,000 total liabilities 15000 5000|| Stockholders' Equity 10000 common stock retained earnings total stockholders' equity 25420 total liabilities and stockholders' equity 6770 3650 10420 6000 9000 15000 25420 Total Assets Total Assets