Shown below in random order is a list of balance sheet items for Apple Valley Farms at September 30, 2011:

Instructions
a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar to that illustrated in Chapter 2 of the text. (After “Barns and Sheds,” you may list the remaining assets in any order.) Include a proper heading for your balance sheet.
b. Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $4,500 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of thisbarn.

Transcribed Image Text:

Land Barns and Sheds Notes Payable Accounts Receivable Apple Trees Accounts Payable Property Taxes Payable Capital Stock $ 50,000 19,100 65,000 15,000 84,000 8,100 4,700 100,000 Fences and Gates Irrigation System Cash. Livestock Farm Machinery Retained Earnings $14,100 10,200 9,300 .. 5,000 20,000 1,200