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;
(c) allowance for doubtful accounts $3,800.
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.)