Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total
Illini Company, Inc.
as of 12/31/20X0
Accounts receivable, net
Total current assets
Liabilities and shareholders\' equity
Common stock, 20,000 shares outstanding, $1 par
Additional paid-in capital
Total shareholders\' equity
Total liabilities and shareholders\' equity
- Note that all additional paid-in capital (APIC) sub-accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked in the “Additional paid-in capital” account on the Balance Sheet.
- Illini provides a one-year warranty for one of its products. Based on industry experience, the estimated total warranty costs are 6% of sales. Sales of the product in 20X1 and 20X2 are $350,000 and $400,000, respectively. Actual warranty claims in 20X1 and 20X2 are $10,000 and $30,000, respectively. Out of the $30,000 claims in 20X2, $12,000 is related to the 20X1 sale.