PROBLEM $20-3$B

The account balances taken from the general ledger for Edwards, Inc., are as follows:

Accounts Payable$ $345,046$

Accounts Receivable $497,036$

Accumulated Depreciation$$Building $190,945$

Accumulated Depreciation$$Equipment $104,650$

Allowance for Doubtful Accounts $17,260$

Building $367,000$

Cash $63,545$

Common Stock, $$15$ par value $550,800$

Dividends Payable $25,092$

Equipment $223,075$

Income Tax Payable $63,036$

Land $76,500$

Merchandise Inventory $1,048,080$

Mortgage Payable $($due in $7$ years$)149,000$

Notes Receivable $38,560$

Paid$-$in Capital in Excess of Par Value $6,120$

Paid$-$in Capital in Excess of Par Value $$ Common Stock $132,160$

Patents $25,000$

Preferred $8$ Percent Stock, $$100$ par value $232,000$

Prepaid Insurance $2,938$

Retained Earnings $326,500$

Retained Earnings Appropriated for Inventory Losses $25,700$

Retained Earnings Appropriated for Property Expansion $49,000$

Additional information is as follows:

a$.$ Preferred $8$ percent stock: $3,000$ shares authorized, $2,320$ shares issued

b$.$ Common stock: $40,000$ shares authorized, $36,720$ shares issued

Required: Prepare a classified balance sheet dated December $31.$