The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an
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Prepare a classified balance sheet in proper form. Make any necessary corrections.
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Mikeska Company Balance Sheet as of December 31, 2017 ($ in thousands) Assets Fixed assets-tangible Land Buildings and equipment Less: Reserve for depreciation $500 200 (50) S 650 20 Factory supplies Current assets Inventory Accounts receivable Cash 163 102 68 Fixed assets-intangibles Patents Goodwill 51 49 100 Deferred charges Discount on bonds payable Returnable containers 12 32 Total assets $1,147 Liabilities Current liabilities 140 Accounts payable Allowance for doubtful accounts Wages payable 195 $ 342 Long-term liabilities Bonds payable Reserve for continge ncies 400 50 450 Equity Capital stock, $10 par, 5,000 shares issued and outstanding Capital surplus Earned surplus Dividends paid 50 75 270 (40) 355 $1,147 Total liabilities
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1 This classification assumes this amount has been properly accrued If instead the item is interpret...View the full answer
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Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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