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The following balance sheet was prepared by the bookkeeper for Jacuzi Company as of December 31,...

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.

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Expert Solution

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

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