Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 82

Complete the balance sheet A partially completed balance sheet for Blue Co., Inc., as of January 31, 2011, follows. Where amounts are shown for various items, the amounts are correct.

Assets		Liabilities and Owners’ Equity
Cash	$ 700	Note payable	$
Accounts receivable		Accounts payable	3,400
Land
Automobile		Total liabilities	$
Less: Accumulated		Owners’ equity
depreciation		Common stock	$ 8,000
		Retained earnings
		Total owners’ equity	$
Total assets	$	Total liabilities + owners’ equity	$

Required:

Using the following data, complete the balance sheet.

a. Blue Co.’s records show that current and former customers owe the firm a total of $4,000; $600 of this amount has been due for more than a year from two customers who are now bankrupt.

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b. The automobile, which is still being used in the business, cost $18,000 new; a used car dealer’s Blue Book shows that it is now worth $10,000. Management estimates that the car has been used for one-third of its total potential use.

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c. The land cost Blue Co. $11,000; it was recently assessed for real estate tax purposes at a value of $15,000.

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d. Blue Co.’s president isn’t sure of the amount of the note payable, but he does know that he signed a note.

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e. Since Blue Co. was formed, net income has totaled $33,000, and dividends to stockholders have totaled $19,500.

Step 1 of 4

Complete the balance sheet (Missing figures)