Question

3- Arrange the following items in proper balance sheet presentation;

Accumulated depreciation                                                                                       $300,000

Retained earnings                                                                                            96,000

Cash                                                                                                               10,000

Bonds payable    136,000

Accounts receivable                                                                                               48,000

Plant and equipment—original cost     680,000

Accounts payable                                                                                                35,000

Allowance for bad debts 6,000

Common stock, $1 par, 100,000 shares outstanding 100,000

Inventory                                                                                                             66,000

Preferred stock, $50 par, 1,000 shares outstanding 50,000

Marketable securities                                                                                               20,000

Investments                                                                                                          20,000

Notes payable                                                                                                     33,000

Capital paid in excess of par (common stock) 88,000

Answer 1

Assets	Amount($)	Amount($)
Current Assets
Cash		$10,000
Marketable Securities		$20,000
Accounts Receivable	$48,000
Less: Allowances for bad debt	-$6,000	$42,000
Inventory		$66,000
Fixed Assets
Plant and Equipment on cost	$680,000
Less: Accumulated Depreciation	-$300,000	$380,000
Investment		$20,000
Total Assets		$538,000

Liability and Shareholders' Equity	Amount($)	Amount($)
Current Liabilities
Accounts Payable		$35,000
Notes Payable		$33,000
Non-Current Liabilities
Bonds Payable		$136,000
Shareholders' Equity
Common Stock
100,000 shares issued and outstanding, $1 par	$100,000
Paid in capital in excess of par	$88,000	$188,000
Preferred Stock
1,000 shares issued and outstanding, $50 par		$50,000
Retained Earnings		$96,000
Total Liability and Shareholders' Equity		$538,000