Exquisite jewelers is developing its annual financial statement for 2012. The following amounts were correct at December 31, 2012; cash $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500; investments in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $2,500; long-term note payable, $42,000; income taxes payable, $9000 retained earrings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share).
required:
1. Based on these data, prepare a December 31, 2012 balance sheet. Use the following major captions (list the individual items under these captions) a. Assets: Current Assets, Long-Term Investments, Fixed Assets, and Other Assets. b. Liabilities; Current Liabilities and Long-Term Liabilities. c. Stockholders' Equity: Contributed Capital and Retained Earnings.
2. What is the net book value of the store equipment? Explain what this value means.