The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an inexperienced accountant and submitted to you for review:

Required:

Prepare a classified balance sheet in proper form. Make any necessary corrections.

Transcribed Image Text:

Mikeska Company Balance Sheet as of December 31, 20X1 ($ in thousands) Assets Fixed assets-tangible Land Buildings and equipment Less: Reserve for depreciation Factory supplies Current assets $ 500 200 (50) $ 650 20 Inventory Accounts receivable 163 102 Cash Fixed assets-intangibles Patents Goodwill 68 333 51 49 100 Deferred charges Discount on bonds payable Returnable containers 12 32 44 Total assets $ 1,147 Liabilities Current liabilities Accounts payable Allowance for doubtful accounts 140 7 $ 342 Wages payable Long-term liabilities Bonds payable Reserve for contingencies Equity Capital stock, $10 par, 5,000 shares issued and outstanding Capital surplus Earned surplus Dividends paid 195 400 50 450 50 75 270 (40) 355 Total liabilities $ 1,147