List the corrections needed to present in good form the balance sheet below. Errors include misclassifications, lack of adequate disclosure, and poor terminology. Do not concern yourself with the arithmetic. If an item can be classified in more than one category, select the category most favored by the authors of your textbook. List the item that is incorrect and how it should be shown. Please do not try to restate the balance sheet.

Problem A-IV Balance Sheet Form. List the corrections needed to present in good form the balance sheet below. Errors include misclassifications, lack of adequate disclosure, and poor terminology. Do not concern yourself with the arithmetic. If an item can be classified in more than one category, select the category most favored by the authors of your textbook. List the item that is incorrect and how it should be shown. Please do not try to restate the balance sheet. West Corporation Balance Sheet For the year ended December 31, 2010 Assets Current Assets: Cash Trading securities (fair value, $32,000) Accounts receivable Merchandise inventory Supplies inventory Stock investment in subsidiary company Investments: Treasury stock Tangible Fixed Assets: Buildings and land Less: Reserve for depreciation $ 18,000 27,000 75,000 60,000 3,000 60,000 $243,000 78,000 213,000 60,000 Deferred Charges: Unamortized discount on bonds payable Other Assets: Cash surrender value of life insurance 153,000 3,000 54,000 $531,000 Liabilities and Capital Current Liabilities: Accounts payable Reserve for income taxes Customer's accounts with credit balances Long-Term Liabilities: Bonds payable Total Liabilities Capital Stock: $ 45,000 42,000 3 $ 87,003 120,000 207,003 Capital stock Earned surplus Cash dividends declared 225,000 74,997 24,000 323,997 $531,000