On December 31, 2019, Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified. Stevens Company Balance Sheet For Year Ended December 31, 2019 Current Assets: Current Liabilities: Inventory $ 6,000 Accounts payable $ 9,900 Accounts receivable 5,900 Allowance for doubtful accounts 800 Cash 2,300 Salaries payable 1,500 Treasury stock (at cost) 3,300 Taxes payable 2,500 Long-Term Investments: Long-Term Liabilities: Temporary investments in marketable securities 3,200 Bonds payable (due 2023) 11,000 Investment in held-to-maturity bonds 10,0
On December 31, 2019, Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified. Stevens Company Balance Sheet For Year Ended December 31, 2019 Current Assets: Current Liabilities: Inventory $ 6,000 Accounts payable $ 9,900 Accounts receivable 5,900 Allowance for doubtful accounts 800 Cash 2,300 Salaries payable 1,500 Treasury stock (at cost) 3,300 Taxes payable 2,500 Long-Term Investments: Long-Term Liabilities: Temporary investments in marketable securities 3,200 Bonds payable (due 2023) 11,000 Investment in held-to-maturity bonds 10,0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 31, 2019, Stevens Company's bookkeeper prepared the following
| Stevens Company Balance Sheet For Year Ended December 31, 2019 |
||||
| Current Assets: | Current Liabilities: | |||
| Inventory | $ 6,000 | Accounts payable | $ 9,900 | |
| |
5,900 | Allowance for doubtful accounts | 800 | |
| Cash | 2,300 | Salaries payable | 1,500 | |
| |
3,300 | Taxes payable | 2,500 | |
| Long-Term Investments: | Long-Term Liabilities: | |||
| Temporary investments in marketable securities | 3,200 | Bonds payable (due 2023) | 11,000 | |
| Investment in held-to-maturity bonds | 10,000 | Unearned rent (for 3 months) | 900 | |
| Property, Plant, and Equipment: | Shareholders' Equity: | |||
| Land | 8,100 | |
24,200 | |
| Office supplies | 800 | |
9,200 | |
| Buildings and equipment | 35,600 | Additional paid-in capital on common stock | 10,400 | |
| Intangibles: | Common stock, $10 par | 12,000 | ||
| Patents (net) | 5,000 | |||
| Prepaid insurance (for 6 months) | 1,200 | |||
| Discount on bonds payable | 1,000 | |||
| Total Assets | $82,400 | Total Credits | $82,400 |
Required:
Next Level You determine that the account balances listed on the balance sheet are correct but, in certain cases, incorrectly classified. Prepare a properly classified balance sheet for Stevens as of December 31, 2019.
*** PLEASE NOTE: I do not know if the filled in blanks in the two provided photos are correct. It will not let me rest it or change them back to being blank.
Thank you!
Transcribed Image Text:M4 CNOW Assignment
Assets
Current Assets:
Cash
Temporary investments in marketable securities
Accounts receivable
Less: Allowance for doubtful accounts
Inventory
Prepaid items:
Unearned rent
Office supplies
Total current assets
Long-Term Investmentsi
Investment in held-to-maturity bonds
Property, Plant, and Equipment:
Land
Buildings and equipment
Less: Accumulated depreciation
Total property, plant, and equipment
Intangible Assets
Patents (net)
Total assets
Liabilities
Current Liabilities
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Transcribed Image Text:MA CNOW Assignment
Current Liabilities:
Accounts payable
Salaries payable
Taxes payable
Unearned rent
Total current liabilities
Long-Term Liabilities:
Bonds payable (due 2023)
Less: Discount on bonds payable
Total long-term liabilities
Total liabilities
Shareholders' Equity
Contributed Capital:
Common stock, $10 par
Additional paid-in capital on common stock
Total contributed capital
Retained earnings
Less: Treasury stock (at cost)
Total liabilities and shareholders' equity
Total liabilities and shareholders' equity
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