Question

Arrange the following items in proper balance sheet presentation: (Amounts to be deducted should be indicated with parentheses or a minus sign.)
  

Accumulated depreciation	$	309,000
Retained earnings		89,000
Cash		10,000
Bonds payable		158,000
Accounts receivable		56,000
Plant and equipment—original cost		697,000
Accounts payable		43,000
Allowance for bad debts		6,000
Common stock, $1 par, 100,000 shares outstanding		100,000
Inventory		73,000
Preferred stock, $57 par, 1,000 shares outstanding		57,000
Marketable securities		24,000
Investments		29,000
Notes payable		38,000
Capital paid in excess of par (common stock)		89,000

Answer 1

Properly arrangedBalance sheet

Assets			Liabilities and Stockholder's Equity
Current assets:			Current liabilities:
Cash		$10,000	Accounts payable	$43,000
Inventory		$73,000	Notes payable	$38,000
Marketable securities		$24,000	Total current liabilities	$81,000
Accounts receivable	$56,000		Long-term liabilities:
Allowance for bad debts	-$6,000		Bonds payable	$158,000
Net accounts receivable		$50,000	Total liabilities	$239,000
Total current assets		$157,000	Stockholder's equity:
Other assets:			Common stock	$100,000
Investments		$29,000	Capital paid in excess of par (common stock​)	$89,000
Fixed assets:			Preferred stock	$57,000
Plant and equipment-original cost	$697,000		Retained earnings	$89,000
Accumulated depreciation	-$309,000		Total stockholder's equity	$335,000
Net plant and equipment		$388,000
Total assets		$574,000	Total liabilities and stockholder's equity	$574,000