The bookkeeper for Concord Corp. has prepared the following statement of financial position as at July 31, 2020:

CONCORD CORP. Statement of Financial Position As at July 31, 2020
Cash		$ 87,000		Notes and accounts payable		$ 64,000
Accounts receivable (net)		44,300		Long-term liabilities		89,000
Inventory		78,000		Shareholders' equity		177,300
Equipment (net)		85,000
Patents (net)		36,000
		$ 330,300				$ 330,300

The following additional information is provided:

1.		Cash includes $ 2,400 in a petty cash fund and $ 27,000 in a bond sinking fund.
2.		The net accounts receivable balance is composed of the following three items: (a) accounts receivable debit balances $ 58,000; (b) accounts receivable credit balances $ 8,800; and (c) allowance for doubtful accounts $ 4,900.
3.		Inventory costing $ 6,600 was shipped out on consignment on July 31, 2020. The ending inventory balance does not include the consigned goods. Receivables of $ 6,600 were recognized on these consigned goods.
4.		Equipment had a cost of $ 123,000 and an accumulated depreciation balance of $ 38,000.
5.		Income Tax Payable of $ 9,300 was accrued on July 31. Concord Corp., however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the income tax payable account.
6.		Long-term liabilities are bonds payable issued at par, due in 2025.
7.		Shareholders’ equity is made up of two account balances: Common Shares of $ 118,200 and Retained Earnings of $ 59,100.

(a)

Use the information available to prepare a corrected classified statement of financial position as at July 31, 2020. (Adjust the account balances based on the additional information.) (List Current Assets in order of liquidity.)

Answer rating: 100% (QA)

Concord Corp Balance Sheet As at July 31 2020 Assets Current assets Cash 87000 Add Income ... View the full answer