Reference no: EM131799026
Balance Sheet Project -
Account balances at 12/31/2010:
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Debit
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Credit
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Cash
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$50,000
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Accounts Receivable, net
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38,500
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Inventories
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65,300
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Equipment, net
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104,000
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Patents
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20,000
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Notes and Accounts Payable
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$52,000
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Long-term Liabilities
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100,000
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Stockholders' Equity
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125,800
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$277,800
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$277,800
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Except for the following items, all adjustments have been recorded in the accounts.
1. Cash includes $200 petty cash and $20,000 in a fund designated for plant expansion in 2012.
2. The net accounts receivable is comprised of: (a) accounts receivable $52,000, and (b) allowance for doubtful accounts $13,500.
3. Equipment had a cost of $132,000 and accumulated depreciation of $28,000.
4. Notes and Accounts Payable is comprised of the following: Accounts Payable $32,000; Taxes Payable $3,000; Note Payable $17,000, due June 30, 2012.
5. Long-term liabilities are 10-year bonds paying interest at 9% maturing June 30, 2021.
6. Stockholders' Equity is comprised of: Common Stock ($1 par) $50,000; Additional Paid-in Capital $55,000; and Retained Earnings of $20,800.
Additional Information:
1. Name of Firm: FMB Inc.
2. Headquarters: Taos, New Mexico
3. Business: Manufactures computer chips
4. Operating Year: Calendar Year (2011)
5. Sales $210,000; EBIT $14,000; MV of Equity $225,000.
Requirements: Prepare classified balance sheet (to be audited) and notes (if necessary).