Problem - The following incorrect Balance Sheet was prepared for Browning Corporation as of December 31, 2016.
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Browning Corporation Balance Sheet as of December 31, 2016
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Cash
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$80,000
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Accounts payable
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$75,000
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Accounts receivable (net)
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52,200
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Bonds payable
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100,000
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Inventory
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57,000
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Common Stock
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218,500
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Investments
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76,300
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Equipment (net)
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96,000
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Copyrights
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32,000
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Total Assets
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$393,500
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Total Liabilities & Stockholder's Equity
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$393,500
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Additional information:
1. Browning has $3,000 of inventory out on consignment, which is not included in the Inventory account balance, however $3,000 was recorded as an Account Receivable.
2. Browning is trying to sell a piece of equipment it no longer uses. The equipment has a book value of $1,000.
3. The remaining equipment on Browning's ledger has a $40,000 balance in Accumulated Depreciation.
4. Browning Corporation has key-man insurance with a cash surrender value of $9,400, which is included in the balance of the Cash account.
5. A bank overdraft of $2,500 has been deducted from the Cash account.
Required: Prepare a corrected Balance Sheet in report form.
Attachment:- Assignment.rar