The following balance sheet was prepared by the bookkeeper for Perry Company as of December 31, 2008.

Question:

Perry Company Balance Sheet

as of December 31, 2008

Cash$ 80,000

Accounts payable$ 75,000

Accounts receivable (net)52,200

Long-term liabilities100,000

Inventories57,000

Stockholders' equity218,500

Investments76,300

Equipment (net)96,000

Patents32,000$393,500$393,500

The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy $9,400, 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? credit balances $4,000,

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 $19,000 and available-for-sale $48,300, and franchises $9,000.

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.Directions (20 points).

Prepare a balance sheet in good form (stockholders' equity details can be omitted?

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