The following list of balance sheet items are in random order for Alexander Farms, Inc., at September 30, current year.

Instructions
a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar to that illustrated in Exhibit 2-10. (After "Barns and Sheds," you may list the remaining assets in any order.) Include a proper heading for your balance sheet.
b. Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $14,000 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of this barn.

Transcribed Image Text:

$490,000 Fences and Gates . 33,570 20,125 16,7 10 78,300 Irrigation System.._. . . . Accounts Recelvable... . Cltrus Trees 76,650 77,095 Farm Machinery.._. . . . 42,970 Property Taxes Payable Capital Stock . . . . 9,135 Wages Payable 290,000 5,820