Question

5. Devon’s bookkeeper provided the following balance sheet.

DEVON COMPANY

Balance Report for the year ended December 31, 2016

Current Assets: Cash	$ 58,000	Current Liabilities: Accounts payable	$ 25,000
Accounts receivable	123,500	Accumulated depreciation: buildings	20,000
Inventory, at higher of cost or market (cost $29,850)	35,800	Wages payable	22,200
Sinking fund for bond retirement	115,000	Additional paid-in capital on common stock	100,000
Long-Term Investments:		Long-Term Liabilities:
Treasury stock (at cost)	55,500	Bonds payable	100,000
Investments in bonds Marketable securities,	100,000	Preferred stock, $50 par Allowance for doubtful accounts	150,000
short term at fair value	25,000		15,000
Trademark	25,000	Premium on preferred stock	45,000
Property, Plant, and Equipment:		Accumulated depreciation: equipment	12,000
Land	75,000	Current taxes payable	10,000
Buildings	100,000 Shareholders’ Equity:
Equipment	45,000 Common Stock, $1 par		75,000
Intangibles: Employees	150,000	Unrealized gain on write up of inventory to market
Copyrights	15,000	value	5,950
Patents	20,000	Retained earnings	362,650
Total Assets                                        $ 942,800 Total Equities                                                     $ 942,800

Required:

Prepare the corrected asset section of a classified balance sheet.

ANSWER: Please help!

Answer 1