Exercise 5-6 Your answer is partially correct. Try again The bookkeeper for Bram
ID: 2391159 • Letter: E
Question
Exercise 5-6 Your answer is partially correct. Try again The bookkeeper for Bramble Company has prepared the following balance sheet as of July 31, 2017 BRAMBLE COMPANY BALANCE SHEET AS OF JULY 31, 2017 Cash Accounts receivable (net) Inventory Equipment (net) Patents 45,190 76,190 156,690 $278,070 $ 70,190 Notes and accounts payable 41,690 Long-term liabilities 61,190 Stockholders' equity 84,000 21,000 $278,070 The following additional information is provided 1. Cash includes $1,200 in a petty cash fund and $11,890 in a bond sinking fund 2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $45,190 and (b) allowance for doubtful accounts $3,500 3. Inventory costing $4,991 was shipped out on consignment on July 31, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of $4,991 were recognized on these consigned goods 4. Equipment had a cost of $113,190 and an accumulated depreciation balance of $29,190 5. Income taxes payable of $6,000 were accrued on July 31. Bramble 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. Prepare a corrected classified balance sheet as of July 31, 2017, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity)Explanation / Answer
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Bramble Company Balance sheet 31-Jul-17 Assets Current Assets Cash $ 64,300 Accounts Receivable $ 40,199 Less: Allowance for Boubtful Receivables $ 3,500 $ 36,699 Inventories $ 66,181 Total Current Assets $ 167,180 Long-Term Investments Bond Sinking Fund $ 11,890 Property, Plant and Equipment Equipment $ 113,190 Accumulated Depreciation $ 29,190 $ 84,000 Intangible Assets Patents $ 21,000 Total Assets $ 284,070 Liabilities & Stockholder's Equity Current Liability Notes and Accounts Payable $ 45,190 Taxes Payable $ 6,000 Total current Liability $ 51,190 Long-term Liabilities $ 76,190 Total Liabilities $ 127,380 Stockholder's Equity $ 156,690 Total Liabilities and Stockholder's Equity $ 284,070