Quiz 3
Acct 2241
Name
Wiet
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3. The following balance sheet was prepared by the bookkeeper for Quinn Company as of December 31, 2004.
Quinn Company
Balance Sheet
as of December 31, 2004
Cash
$ 90,000
Accounts Payable
$ 75,000
Accounts receivable (net)
52,200
Long-term liabilities
110,000
Inventories
57,000
Stockholders’ 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 the cash surrender value of a life insurance policy $12,400, and a bank overdraft of $1,500 has been deducted.
2. The net accounts receivable balance includes:
(a) accounts receivabledebit balances $60,000;
(b) accounts receivablecredit balances $1,000;
(c) allowance for doubtful accounts $6,800.
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 stock, trading $24,000 and available-for-sale $43,300, and franchises $9,000.
5. Equipment costing $10,000 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 a balance sheet in good form (stockholders’ equity details can be omitted.)
