Reference no: EM132651352
Question - The following statement of financial position was prepared by the bookkeeper for Badger Corp. at December 31, 2020.
Badger Corp. Statement of Financial Position December 31, 2020
Cash $90,000
Accounts payable $75,000
Accounts receivable (net) 52,200
Long-term liabilities 110,000
Inventories 57,000
Shareholders' equity 208,500
Investments 76,300
Equipment (net) 86,000
Patents 32,000
$393,500 $393,500
The following additional information is provided:
1. "Cash" includes prepaid insurance of $9,400; as well, a bank overdraft of $1,500 has been deducted.
2. The net accounts receivable balance includes:
(a) accounts receivable-debit balances $62,000;
(b) accounts receivable-credit balances $5,000;
(c) allowance for doubtful accounts $4,800.
3. Inventories do not include goods costing $5,000 shipped out on consignment. Receivables of $5,000 were recorded on these goods.
4. Investments include investments in common shares, trading $24,000 and long-term $43,300, and franchises $9,000.
5. Equipment costing $8,000 with accumulated depreciation $6,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions - Prepare statement of financial position in good form (shareholders' equity details can be omitted.)