Question

Copas prepare me following statement of financial position as at July 31, 2020: art CULVER CORP. Statement of Financial Position As at July 31, 2020 Cash $88,000 Notes and accounts payable Accounts receivable (net) 46,100 Long-term liabilities Inventory 67,000 Shareholders' equity Equipment (net) 150,000 Patents (net) 37,000 $388,100 $58,000 91,000 239,100 $388,100 The following additional information is provided: 1. Cash includes $2,500 in a petty cash fund and $22.000 in a bond sinking fund. 2. The net accounts receivable balance is composed of the following three items: (a) accounts receivable debit balances $60,000; (b) accounts receivable credit balances $9,200; and (c) allowance for doubtful accounts $4,700. 3. Inventory costing $6,000 was shipped out on consignment on July 31, 2020. The ending inventory balance does not include the consigned goods. Receivables of $6,000 were recognized on these consigned goods. 4. Equipment had a cost of $183,000 and an accumulated depreciation balance of $33,000. 5. Income Tax Payable of $9.300 was accrued on July 31. Culver Corp., 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 income tax payable account. 6. Long-term liabilities are bonds payable issued at par, due in 2025. 7. Shareholders' equity is made up of two account balances: Common Shares of $159,400 and Retained Earnings of $79.700. (a) Use the information available to prepare a corrected classified statement of financial position as at July 31, 2020. (Adjust the account balances based on the additional information.) (List Current Assets in order of liquidity.)

Answer 1

Culver Corp. Balance Sheet As at 31.7.2020 Assets Current Assets Cash Accounts Receivable Less: allowance for doubtful accounts Inventories 75300 44800 -4700 40100 73000 188400 Long-Term Investments Bond Sinking Fund 22000 22000 Property Plant and Equipment Equipment Less: Accumulation Depreciation 183000 -33000 150000 Intangible Assets Patents 37000 Total Assets 397400 Liabilities and stockholders' equity Current liabilities Notes and accounts payable Taxes payable Total current liabilites Long term liabilites 58000 9300 67300 91000 Total liabilites 158300 Stockholders' equity Total liabilites and stockholders' equity 239100 397400 60000-9200-6000 = 44800 88000-22000+9300 = 75300