A partially completed balance sheet for Blue Co. Inc. as of October 31, 2019, is presented. Where amounts are shown for various items, the amounts are correct.

Required:

Using the following data, complete the balance sheet.

a. Blue Co.?s records show that current and former customers owe the firm a total of $20,000; $3,000 of this amount has been due for more than a year from two customers who are now bankrupt.

b. The automobile, which is still being used in the business, cost $90,000 new; a used car dealer?s Blue Book shows that it is now worth $50,000. Management estimates that the car has been used for one-third of its total potential use.

c. The land cost Blue Co. $55,000; it was recently assessed for real estate tax purposes at a value of $75,000.

d. Blue Co.?s president isn?t sure of the amount of the note payable, but he does know that he signed a note.

e. Since Blue Co. was formed, net income has totaled $165,000, and dividends to stockholders have totaled $97,500.

Transcribed Image Text:

Liabilities and Stockholders' Equity Note payable Accounts payable Assets Cash Accounts receivable Land Automobile Less: Accumulated depreciation $3,500 16,000 Total liabilities .. Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 40,000 Total assets 24 %24