The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011 

The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) Accounts receivable debit balances $60,000;
(b) Accounts receivable 0;
(c) Allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment.
Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $13,000 and available-for-sale $48,300, and franchises $15,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale.
Accumulated depreciation on the other equipment is $40,000.
(6) An unrecorded liability was not recorded on the balance sheet of $2000.

Instructions
Prepare a balance sheet in good form (stockholders' equity details can beomitted.)

Transcribed Image Text:

Purple Company Balance Sheet as of December 31, 2011 S 75,000 100,000 218,500 Cash Accounts receivable (net) Inventories Investments Equipment (net) Patents S 80,000 Accounts payable 52,200 Long-term liabilities 57,000 Stockholders' equity 76,300 96,000 32.000 393,500 S393.500