Reference no: EM13678004

The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2014.

GERONIMO COMPANY
BALANCE SHEET
AS OF JULY 31, 2014
Cash $ 73,280 Notes and accounts payable $ 47,760
Accounts receivable (net) 44,260 Long-term liabilities 79,280
Inventory 64,280 Stockholders' equity 159,780
Equipment (net) 84,000 $286,820
Patents 21,000
$286,820

The following additional information is provided.

1. Cash includes $1,200 in a petty cash fund and $15,340 in a bond sinking fund.
2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable $47,760 and (b) allowance for doubtful accounts $3,500.
3. Inventory costing $5,500 was shipped out on consignment on July 31, 2014. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,500 were recognized on these consigned goods.
4. Equipment had a cost of $115,760 and an accumulated depreciation balance of $31,760.
5. Income taxes payable of $9,190 were accrued on July 31. Geronimo 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, 2014, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity)