Question
A partially completed balance sheet for Blue Co., Inc., as of October 31, 2013, follows. Where amounts are shown for various items, the amounts are
A partially completed balance sheet for Blue Co., Inc., as of October 31, 2013, follows. Where amounts are shown for various items, the amounts are correct. Required: Using the following data, complete the balance sheet. a. Blue Co.'s records show that current and former customers owe the firm a total of $4,000; $700 of this amount has been due for more than a year from two customers who are now bankrupt. b. The automobile, which is still being used in the business, cost $17,100 new; a used car dealer's Blue Book shows that it is now worth $10,000. Management estimates that the car has been used for one-third of its total potential use. c. The land cost Blue Co. $12,000; it was recently assessed for real estate tax purposes at a value of $16,000. d. Blue Co.'s president isn't sure of the amount of the note payable, but he does know that he signed a note. e. Since Blue Co. was formed, net income has totaled $31,000, and dividends to stockholders have totaled $20,750. Assets Cash Accounts receivable Land Blue Co., Inc. Balance Sheet October 31, 2013 Liabilities and Stockholders' Equity 950 Note payable Accounts payable Total liabilities 3,700 dealers Dive DOOK SHOWS LITAL IL IS NOW WOLLIT DIU,UUU. Management estimates ural the car has been used for one-third of its total potential use. c. The land cost Blue Co. $12,000; it was recently assessed for real estate tax purposes at a value of $16,000. d. Blue Co.'s president isn't sure of the amount of the note payable, but he does know that he signed a note. e. Since Blue Co. was formed, net income has totaled $31,000, and dividends to stockholders have totaled $20,750. Blue Co., Inc. Balance Sheet Assets October 31, 2013 Liabilities and Stockholders' Equity Cash $ 950 Note payable Accounts receivable Land Automobile Less: Accumulated Depreciation Accounts payable Total liabilities Stockholders' Equity Total assets Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 3,700 5,500
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