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Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance
Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the banks loan officers in support of her loan application.
The Education Supply Center
Balance Sheet
December X
Assets
Cash $
Accounts Receivable
Inventory
Equipment cost
Personal Residence
Supplies
Family Auto
Total Assets $
Liabilities and Owner's Equity
Accounts Payable $
Note Payable on Family Car
Mortgage on House
Sadie Hawkins, Capital
Total Liabilities and Owner's Equity $
The following additional information was made available by Hawkins:
The inventory has an original cost of $ It is listed on the balance sheet at the estimated selling price.
The cash listed on the balance sheet includes $ in Sadie Hawkins' personal account. The remainder of the cash is in the stores account.
The store recently purchased a delivery truck for $ financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $ on the loan. Of the remaining $ liability, $ is current and the remainder longterm. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it
Depreciation allowable to date is $ on the equipment and $ on the truck.
Required:
Prepare a corrected balance sheet in accordance with generally accepted accounting principles.
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