Exercise 5-6 The bookkeeper for Kingbird Company has prepared the following balance sheet as of July 31, 2020. Cash Accounts receivable (net) Inventory Equipment (net) Patents KINGBIRD COMPANY BALANCE SHEET AS OF JULY 31, 2020 $ 70,290 Notes and accounts payable 41,790 Long-term liabilities 61,290 Stockholders' equity 84,000 21,000 $278,370 $ 45,290 76,290 156,790 $278,370 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $12,940 in a bond sinking fund. 2. The net accounts receivable balance is comprised of the following two items: (a) accounts receivable 345,290 and (b) allowance for doubtful accounts 53,500. 3. Inventory costing 55,627 was shipped out on consignment on July 31, 2020. The ending inventory balance does not include the consigned goods. Receivables in the amount of 55,627 were recognized on these consigned goods. 4. Equipment had a cost of $113,290 and an accumulated depreciation balance of $29,290. 5. Income taxes payable of $6,000 were accrued on July 31. Kingbird Company, 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 taxes payable amount. Prepare a corrected classified balance sheet as of July 31, 2020, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity) Prepare a corrected classified balance sheet as of July 31, 2020, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity) KINGBIRD COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity Click if you would like to Show Work for this question: Open Show Work