The net accounts receivable balance includes

Assignment Help Financial Accounting

Reference no: EM131286579

The following balance sheet was prepared by Kraus Company as of December 31, 2010.

Kraus Company

Balance Sheet

as of December 31, 2010

Cash $ 80,000 Accounts payable $ 75,000

Accounts receivable (net) 52,200 Long-term liabilities 100,000

Inventories 57,000 Stockholders' equity 218,200

Investments 76,000

Equipment (net) 96,000

Patents 32,000

$393,200 $393,200

The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy $9,000, and a bank overdraft of $2,000 has been deducted.

2. The net accounts receivable balance includes:

(a) accounts receivable—debit balances $60,000;

(b) accounts receivable—credit balances $4,000;

3. Investments include investments in common stock, trading $19,000 and available-for-sale $48,000, and franchises $9,000.

4. Equipment costing $7,000 with accumulated depreciation $2,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $30,000.

Required:

Prepare a balance sheet in good form (stockholders' equity details can be omitted.)

Reference no: EM131286579

Questions Cloud

Develop a plan for executing each of the steps : Develop a plan for executing each of the steps in the creative selling process.- Carefully ensure that you cover all the bases of how you would go about selling your product to an organizational buyer at Walgreens for distribution to all stores.

Systems development or systems implementation : Redesigning processes and procedures is usually an integral part of systems development or systems implementation. Discuss why this is the case, and the dangers of systems development or systems implementation without a reengineering effort.

Advantages does a cio bring to a business : What advantages does a CIO bring to a business? What might be the disadvantages of having a CIO?

What is the decision facing frito lay : What is the decision facing Frito-Lay?- What factors are important in understanding this decision situation?- What are the alternatives?

The net accounts receivable balance includes : The following balance sheet was prepared by Kraus Company as of December 31, 2010. ash includes the cash surrender value of a life insurance policy $9,000, and a bank overdraft of $2,000 has been deducted. The net accounts receivable balance includes..

Calculate the time required for the surface of each sphere : Show in a qualitative manner, on T - t coordinates, the temperatures at the center and at the surface for each sphere as a function of time. Briefly explain the reasoning by which you determine the relative positions of the curves.

Ethics and corporate responsibility in workplace and world : PharmaCARE (We CARE about YOUR health®) is one of the world's most successful pharmaceutical companies, enjoying a reputation as a caring, ethical and well-run company that produces high-quality products that save millions of lives and enhance the..

What is a channel of distribution : What is a value chain?- What is a supply chain, and how is it different from a channel of distribution?- What is a channel of distribution? What are channel intermediaries?

Why do some firms use hybrid marketing systems : What factors are important in determining whether a manufacturer should choose a direct or indirect channel? Why do some firms use hybrid marketing systems?

User Account

All Pages