In: Accounting
The following balance sheet was prepared by the bookkeeper for Jacuzi Company as of December 31, 2017. Jacuzi Company Balance Sheet as of December 31, 2017 Cash $ 80,000 Accounts payable $ 75,000 Accounts receivable (net) 52,200 Bonds payable 100,000 Inventory 57,000 Stockholders' equity 218,500 Investments 76,300 Equipment (net) 96,000 Patents 32,000 $393,500 $393,500 The following additional information is provided: 1. Cash includes the cash surrender value of a life insurance policy $9,400, a bank overdraft of $2,500 has been deducted. Cash also includes petty cash of $725. 2. The net accounts receivable balance includes: (a) accounts receivable—debit balances $60,000 from normal sales to customers; (b) accounts receivable—credit balances $4,000 for sales returns by customers; (c) allowance for doubtful accounts $3,800. 3. Inventory does not include goods costing $3,000 shipped out on consignment. Accounts receivables of $3,000 were recorded on the goods that were consigned.. 4. Investments include common stock of Ford Motor Company $19,000, vacant land held for future use $48,300, and “goodwill” of $9,000. 5. Equipment costing $5,000 with accumulated depreciation $5,000 is still being used by the company. Accumulated depreciation on the remaining equipment is $40,000. 6. Stockholders’ equity consists of Common Stock $150,000, Retained Earnings of $80,400 and Treasury Stock of $11,900. Required Prepare a corrected “classified” balance sheet in good form.
BALANCE SHEET OF JACUZI COMPANY AS AT DEC.31, 2017 | |||||||
(IN $) | |||||||
LIABILITIES | AMOUNT | AMOUNT | ASSETS | AMOUNT | AMOUNT | ||
STOCKHOLDER'S EQUITY | FIXED ASSETS | ||||||
COMMON STOCK | 150000 | EQUIPMENT: | |||||
RETAINED EARNING | 80400 | COST | 141000 | ||||
TREASURY STOCK | -11900 | 218500 | LESS: ACCUMULATED DEPRECIATION | -45000 | 96000 | ||
BOND PAYABLE | 100000 | PATENT | 32000 | ||||
CURRENT LIABILITIES | INVESTMENT | ||||||
ACCOUNT PAYABLE | 75000 | COMMON STOCK OF FORD MOTOR COMPANY | 19000 | ||||
BANK OVERDRAFT | 2500 | 77500 | LAND | 48300 | |||
GOODWILL | 9000 | 76300 | |||||
CURRENT ASSETS | |||||||
ACCOUNT RECEVABLES: | |||||||
GROSS SALES | 60000 | ||||||
LEES: SALES RETURN | -4000 | ||||||
LEES: SENT ON CONSINMENT | -3000 | ||||||
ACCOUNT RECEVABLES | 53000 | ||||||
LESS: DOUBTFUL DEBTS | -3800 | 49200 | |||||
INVENTORY: | |||||||
IN HANDS | 57000 | ||||||
SENT ON CONSINMENT | 3000 | 60000 | |||||
CASH ACCOUNT: | |||||||
CASH | 72374.8 | ||||||
LIC | 9400 | ||||||
PETTY CASH | 725.2 | 82500 | |||||
396000 | 396000 | ||||||