Shown in random order is a list of balance sheet items for Maple Valley Farms at September 30, current year.

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. 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 this barn.

Transcribed Image Text:

19,100 65,000 15,000 84,000 8,100 4,700 100,000 Barns and Sheds ._. 10,200 9,300 5,000 20,000 . .. Apple Trees Farm Machinery Property Taxes Payable 1,200