The following was prepared by the bookkeeper for Perry Company as of December 31, 2008.
Perry Company Balance Sheet
as of December 31, 2008
Cash$ 80,000
Accounts payable$ 75,000
Accounts receivable (net)52,200
Long-term liabilities100,000
Inventories57,000
Stockholders’ equity218,500
Investments76,300
Equipment (net)96,000
Patents32,000$393,500$393,500
The following additional information is provided:
1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.
2. The net balance includes:
(a) debit balances $60,000,
(b) credit balances $4,000,
(c) Allowance for doubtful accounts $3,800
3. Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
4. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000.
5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.Directions (20 points).
Prepare a in good form (stockholders’ equity details can be omitted?
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