Question Presented below is the relevant information for Preeti Inc., for the year 2012:
|
Cash
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$200,000
|
|
Accounts receivable (net)
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60,000
|
|
Inventories (at average cost)
|
45,000
|
|
Available for sale securities, at fair value (long term)
|
26,000
|
|
Equipment (net)
|
129,000
|
|
Land held for speculation
|
59,000
|
|
Cash surrender value of life insurance
|
10,000
|
|
Patents
|
11,000
|
|
Notes and accounts payable
|
85,000
|
|
Long term liabilities
|
165,000
|
|
Stockholders' equity
|
290,000
|
The following additional information is provided:
• Cash includes $50,000 designated for plant expansion in 2015.
• The netaccounts- receivable is comprised of accounts receivable $68,000, and allowance for doubtful accounts $8,000.
• Equipment had a cost of $160,000 and accumulated depreciation of $31,000.
• Note and accounts payable include: Accounts payable $26,000; Taxes payable $21,000; and Note payable $38,000 due 6/15/2013.
• Long term liabilities are 10 year bonds, paying interest at 10%, maturing 6/30/2020, and comprised of: Bonds payable $190,000; Discount on bonds payable $25,000.
• Stockholder's equity is comprised of: Common stock ($1 par) 100, 000 shares authorized, 50,000 shares issued and outstanding at $2.10; and Retained earnings of $185,000.
Instructions: Present the items above in proper format to prepare a balance sheet. Use the answer sheet provided.