The accountant for Delicious Bakery prepares the following condensed balance sheet.

Delicious Bakery

Condensed Balance Sheet

December 31, 2011

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,415

Less: Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000

Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$24,415

Add: Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,120

$99,535

Less: Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600

Investment in business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $95,935

A review of the account balances disclosed the following data.

(a) An analysis of the current asset grouping revealed the following:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,600

Accounts receivable (fully collectible) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500

Notes receivable (notes of customer who has been declared bankrupt and

is unable to pay anything on the obligations) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

Investment securities—trading, at cost (market value $2,575) . . . . . . . . . . . 4,250

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,965

Cash surrender value of insurance on officers’ lives . . . . . . . . . . . . . . . . . . . 4,100

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,415

The inventory account was found to include supplies costing $425, a delivery truck acquired at the end of 2011 at a cost of $2,100, and fixtures at a depreciated value of $10,400. The fixtures had been acquired in 2005 at a cost of $12,500.

(b) The total for other assets was determined as follows.

Land and buildings at cost of acquisition, July 1, 2009 . . . . . . . . . . . . . . . . . . . . . $92,000

Less balance due on mortgage, $16,000, and accrued interest on mortgage, $880

(mortgage is payable in annual installments of $4,000 on July 1 of each year

together with interest for the year at that time at 11%) . . . . . . . . . . . . . . . . . . . . . 16,880

Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,120

It was estimated that the land at the time of the purchase was worth $30,000. Buildings as of December 31, 2011, were estimated to have a remaining life of 17½ years.

(c) Current liabilities represented balances that were payable to trade creditors.

(d) Other liabilities consisted of withholding, payroll, real estate, and other taxes payable to the federal, state, and local governments. However, no recognition was given the accrued salaries, utilities, and other miscellaneous items totaling $350.

(e) The company was originally organized in 2004 when 5,000 shares of no-par stock with a stated value of $5 per share were issued in exchange for business assets that were recognized on the books at their fair market value of $55,000. Instructions: Prepare a corrected balance sheet with the items properly classified.