On December 31, 2016, the Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified.
Question:
On December 31, 2016, the Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified.
Stevens Company Balance Sheet | ||||
Current Assets: | | | Current Liabilities: | |
Inventory | $ 6,000 | | Accounts payable | $ 9,900 |
Accounts receivable | 5,900 | | Allowance for doubtful accounts | 800 |
Cash | 2,300 | | Salaries payable | 1,500 |
Treasury stock (at cost) | 3,300 | | Taxes payable | 2,500 |
Long-Term Investments: | | | Long-Term Liabilities: | |
Temporary investments in marketable securities | 3,200 | | Bonds payable (due 2020) | 11,000 |
Investment in held-to-maturity bonds | 10,000 | | Unearned rent (for 3 months) | 900 |
Property, Plant, and Equipment: | | | Shareholders' Equity: | |
Land | 8,100 | | Retained earnings | 24,200 |
Office supplies | 800 | | Accumulated depreciation on buildings and equipment | 9,200 |
Buildings and equipment | 35,600 | | Additional paid-in capital on common stock | 10,400 |
Intangibles: | | | Common stock, $10 par | 12,000 |
Patents (net) | 5,000 | | | |
Prepaid insurance (for 6 months) | 1,200 | | | |
Discount on bonds payable | 1,000 | | | |
Total Assets | $82,400 | | Total Credits | $82,400 |
Required:
You determine that the account balances listed on the balance sheet are correct but, in certain cases, incorrectly classified. Prepare a properly classified balance sheet for the Stevens Company as of December 31, 2016.
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina