The bookkeeper for Carla Company has prepared the following balance sheet as of July 31, 2025. Cash Accounts receivable (net) Inventory Equipment (net) Patents 1. 2. The following additional information is provided. 3. 4. Carla Company Balance Sheet As of July 31, 2025 5. $ 67,620 Notes and accounts payable 39,690 Long-term liabilities 58,800 Stockholders' equity 82,320 20,490 $268,920 $43,120 73,500 152,300 $268,920 Cash includes $1,176 in a petty cash fund and $14,700 invested in a 24-month certificate of deposit. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $43,120 and (b) allowance for doubtful accounts $3,430. Inventory costing $5,194 was shipped out on consignment on July 31, 2025. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,194 were recognized on these consigned goods. Equipment had a cost of $109,760 and an accumulated depreciation balance of $27,440. Income taxes payable of $5,880 were accrued on July 31. Carla Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2025, from the available information, adjusting the account balances usi the additional information. (List Current Assets in order of liquidity.)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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:
>
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(A
Assets
$
Liabilities and Stockholders' Equity
$
$
$
$
$
C
C
Transcribed Image Text:: > < (A Assets $ Liabilities and Stockholders' Equity $ $ $ $ $ C C
The bookkeeper for Carla Company has prepared the following balance sheet as of July 31, 2025.
Cash
Accounts receivable (net)
Inventory
Equipment (net)
Patents
1.
2.
3.
4.
Carla Company
Balance Sheet
As of July 31, 2025
5.
$ 67,620
39,690
58,800
The following additional information is provided.
82,320
20,490
$268,920
Notes and accounts payable
Long-term liabilities
Stockholders' equity
$ 43,120
73,500
152,300
$268,920
Cash includes $1,176 in a petty cash fund and $14,700 invested in a 24-month certificate of deposit.
The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $43,120 and (b)
allowance for doubtful accounts $3,430.
Inventory costing $5,194 was shipped out on consignment on July 31, 2025. The ending inventory balance does not include
the consigned goods. Receivables in the amount of $5,194 were recognized on these consigned goods.
Equipment had a cost of $109,760 and an accumulated depreciation balance of $27,440.
Income taxes payable of $5,880 were accrued on July 31. Carla Company, however, had set up a cash fund to meet this
obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount.
Prepare a corrected classified balance sheet as of July 31, 2025, from the available information, adjusting the account balances using
the additional information. (List Current Assets in order of liquidity.)
Transcribed Image Text:The bookkeeper for Carla Company has prepared the following balance sheet as of July 31, 2025. Cash Accounts receivable (net) Inventory Equipment (net) Patents 1. 2. 3. 4. Carla Company Balance Sheet As of July 31, 2025 5. $ 67,620 39,690 58,800 The following additional information is provided. 82,320 20,490 $268,920 Notes and accounts payable Long-term liabilities Stockholders' equity $ 43,120 73,500 152,300 $268,920 Cash includes $1,176 in a petty cash fund and $14,700 invested in a 24-month certificate of deposit. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $43,120 and (b) allowance for doubtful accounts $3,430. Inventory costing $5,194 was shipped out on consignment on July 31, 2025. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,194 were recognized on these consigned goods. Equipment had a cost of $109,760 and an accumulated depreciation balance of $27,440. Income taxes payable of $5,880 were accrued on July 31. Carla Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance but was offset against the income taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2025, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity.)
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