FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The bookkeeper for Geronimo Company has prepared the following
| Geronimo Company Balance Sheet As of July 31, 2020 |
||||||
| Cash | $ 69,000 | Notes and accounts payable | $ 44,000 | |||
| 40,500 | Long-term liabilities | 75,000 | ||||
| Inventory | 60,000 | 155,500 | ||||
| Equipment (net) | 84,000 | $274,500 | ||||
| Patents | 21,000 | |||||
| $274,500 |
The following additional information is provided.
1. Cash includes $1,200 in a petty cash fund and $15,000 in a bond sinking fund.
2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $44,000 and (b) allowance for doubtful accounts $3,500.
3. Inventory costing $5,300 was shipped out on consignment on July 31, 2020. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,300 were recognized on these consigned goods.
4. Equipment had a cost of $112,000 and an
5. Income taxes payable of $6,000 were accrued on July 31. Geronimo Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount.
Instructions
Prepare a corrected classified balance sheet as of July 31, 2020, from the available information, adjusting the account balances using the additional information.
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