accouting hw 2 494339

HW 2 (Corrections of a Balance Sheet) The bookkeeper for Garfield Company has prepared the following balance sheet as of July 31, 2012. GARFIELD COMPANY??Balance Sheet??As of July 31, 2012??Cash?$71,370??Notes and accounts payable?$46,580??Accounts receivable (net)?43,080??Long-term liabilities?77,370??Inventories?62,370??Stockholders’ equity?157,870??Equipment (net)?84,000???$281,820??Patents?21,000??????$281,820?????The following additional information is provided. Cash includes $1,200 in a petty cash fund and $12,290 in a bond sinking fund. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable–debit balances $46,580; (b) allowance for doubtful accounts $3,500. Merchandise inventory costing $5,740 was shipped out on consignment on July 31, 2012. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,740 were recognized on these consigned goods. Equipment had a cost of $112,000 and an accumulated depreciation balance of $28,000. Taxes payable of $9,020 were accrued on July 31. Garfield Company, however, had set up a cash fund to meet this obligation. This cash fund was not included in the cash balance, but was offset against the taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2012, from the available information, adjusting the account balances using the additional information. (List current liabilities from largest to smallest amounts, e.g. 10, 5, 2.) GARFIELD COMPANY??Balance Sheet??July 31, 2012??Assets??Current assets??????$???$???Less: ????????Total current assets????????Long-term investments????????????Property, plant, and equipment????????Less: ????????Intangible assets????????Total assets??$??????Liabilities and Stockholders’ Equity???????$???????Total current liabilities??$??????Long-term liabilities????Total liabilities????????Stockholders’ equity????Total liabilities and stockholders’ equity??$??(Current Assets Section of the…