Chapter 2, Problem 2.23P

Problem 2.23

LO 2, 3, 5

Complete the balance sheet A partially completed balance sheet for Blue Co., Inc., as of October 31, 2016, is presented on the following page. Where amounts are shown for various items, the amounts are correct.

Assets	Liabilities and Stockholders’ Equity
Cash	$ 3,500 Note payable	$
Accounts receivable	Accounts payable	16,000
Land
Automobile	$

Total liabilities$ Less: Accumulated Stockholders’ equity: depreciation Common stock $40,000 Retained earnings Total stockholders' equity $ Total assets $ Total liabilities and stockholders’ equity $

Required:

Using the following data, complete the balance sheet.

1. Blue Co.’s records show that current and former customers owe the firm a total of $20,000; $3,000 of this amount has been due for more than a year from two customers who are notv bankrupt.
2. The automobile, which is still being used in the business, cost $90,000 new’; a used car dealer’s Blue Book show's that it is now’ worth $50,000. Management estimates that the car has been used for one-third of its total potential use.
3. The land cost Blue Co. $55,000; it was recently assessed for real estate tax purposes at a value of $75,000.
4. Blue Co.’s president isn’t sure of the amount of the note payable, but he does know that he signed a note.
5. Since Blue Co. was formed, net income has totaled $165,000, and dividends to stockholders have totaled $97,500.