The Washington Corporation has been operating for a number of years. On December 31, 2015, the accountant of the company disappeared, taking the records with him. You have been hired to reconstruct the accounting records, and with this in mind you assemble a list of all company assets. By checking with banks, counting the materials on hand, and investigating the ownership of buildings and equipment, you developed the following information as of December 31.
|
Account |
Balance |
|
Accounts receivable |
$10 |
|
Buildings |
20 |
|
Cash |
56 |
|
Equipment |
25 |
|
Inventories |
14 |
|
Land |
15 |
|
Short-term investment |
5 |
Statements and unpaid invoices found in the office indicate that $40 is owed to trade creditors. There is a $30 bank loan outstanding. Principal is repayable at $1 per month. Interviews with the board of directors and a check of the share capital records indicate that there are 1,000 shares outstanding. Shareholders paid $30 in total to the corporation for these. No record is available regarding past retained earnings. The land and buildings were sold on January 31, 2016 for $44.
Required: Prepare a classified balance sheet at December 31, 2015.
- 1005 reads
