The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2008. The

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The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2008.

The bookkeeper for Geronimo Company has prepared the following balance

The following additional information is provided.
1. Cash includes $1,200 in a petty cash fund and $15,000 in a bond sinking fund.
2. The net accounts receivable balance is comprised of the following three items:
(a) Accounts receivable€”debit balances $52,000;
(b) Accounts receivable€”credit balances $8,000;
(c) Allowance for doubtful accounts $3,500.
3. Merchandise inventory costing $5,300 was shipped out on consignment on July 31, 2008. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,300 were recognized on these consigned goods.
4. Equipment had a cost of $112,000 and an accumulated depreciation balance of $28,000.
5. Taxes payable of $6,000 were accrued on July 31. Geronimo Company, 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 taxes payable amount.

Instructions
Prepare a corrected classified balance sheet as of July 31, 2008, from the available information, adjusting the account balances using the additionalinformation.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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