Exercise+5-6 - Patents 21,000 21,000 Notes and Accounts...

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Exercise 5-6 Correction of a Balance Sheet Garfield Company Balance Sheet July 31, 2010 Balances - as given Adjustments Corrected Balance Sheet Notes Dr. Cr. Dr. Cr. Dr. Cr. Cash 69,000 9,000 12,000 66,000 Accounts Receivable 40,500 11,500 5,300 46,700 Allowance for Doubtful Accounts 3,500 (3,500) (2) Allowance for Doubtful Accounts - contra-asset Inventory 60,000 5,300 65,300 (3) Consignment inventory Bond Sinking Fund 12,000 12,000 (1) Bond Sinking fund - removed from Cash Equipment 84,000 28,000 112,000 (4) Equipment should be shown at original cost Accumulated Depreciation - Equipment 28,000 (28,000) (4) Accumulated Depreciation - contra-asset account
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Unformatted text preview: Patents 21,000 21,000 Notes and Accounts Payable 44,000 8,000 52,000 (2) AR accounts with credit balance Taxes Payable 9,000 9,000 (5) Cash fund to meet tax obligations Long-term Liabilities 75,000 75,000 Stockholder's Equity 155,500 155,500 Totals 274,500 274,500 65,800 65,800 291,500 291,500 (5) Cash fund to meet tax obligations $9,000 Dr. (1) Remove Bond Sinking Fund $12,000 Cr. (2) Allowance for Doubtful Accounts $3,500 Dr. (2) Credit Balance AR $8,000 Dr. (3) Consignment Goods Inc in AR $5,300 Cr....
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This note was uploaded on 03/02/2012 for the course AICS 3115 taught by Professor Lynnalmond during the Spring '11 term at Virginia Tech.

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