The following balance sheet was prepared by the accountant for Rowley Company.

Instructions: 

Prepare a corrected classified balance sheet using appropriate account titles.

Transcribed Image Text:

Rowley Company Balance Sheet June 30, 2002 Assets Cash.. Investment securities-Trading (includes long-term investment of $250,000 in stock of Oak Mountain Developers). Inventories (net of amount still due suppliers of $85,000).. Prepaid expenses (includes a deposit of $10,000 made on inventories to be delivered in 18 months).. Property, plant, and equipment (excluding $60,000 of equipment still in use, but fully depreciated).. Goodwill (based on estimate by the president of Rowley Company).. Total assets. $ 25,500 312,000 624,600 33,000 220,000 70,000 $1,285,100 Liabilities and Owners' Equity Notes payable ($75,000 due in 2004). Accounts payable (not including amount due to suppliers of inventory-see above). Long-term liability under pension plan. Retained earnings restricted for building expansion. Accumulated depreciation.. Taxes payable......... Bonds payable (net of discount of $10,000). Deferred income tax liability. Common stock (10,000 shares, $1 par). Additional paid-in capital.. Unrestricted retained earnings. Total liabilities and owners' equity $ 135,000 142,000 60,000 105,000 73,000 44,500 290,000 68,000 10,000 240,500 117,100 $1,285,100