60.1K

Verified Solution

Link Copied!

The bookkeeper for Crane Company has prepared the following balance sheet as of July 31, 2017 CRANE COMPANY BALANCE SHEET AS OF JULY 31, 2017 Cash Accounts receivable (net) Inventory Equipment (net) Patents 72,270 43,770 63,270 84,000 21,000 $284,310 47,270 78,270 158,770 $284,310 Notes and accounts payable Long-term liabilities Stockholders' equity The following additional information is provided 1. Cash includes $1,200 in a petty cash fund and $11,240 in a bond sinking fund 2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $47,270 and (b) allowance for doubtful accounts $3,500. 3. Inventory costing $4,780 was shipped out on consignment on July 31, 2017. The ending inventory balance does not include the consigned goods. Receivables in the amount of $4,780 were recognized on these consigned goods. 4. Equipment had a cost of $115,270 and an accumulated depreciation balance of $31,270 5. Income taxes payable of $6,000 were accrued on July 31. Crane Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the income taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2017, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity)

Answer & Explanation Solved by verified expert

See Answer