The accounts receivable balance on the balance sheet should be net of allowance for doubtful accounts. Resulting in a net balance of $100,000. Total assists and total liabilities plus equity balances should equal $810,000.

Problem 1 (Textbook Reference: Pl-4A)-Financial Accounting Review Problem The Homer Company uses the perpetual inventory procedure. The 2013 balance sheet of the Homer Company is as follows Homer Company Balance Sheet December 31, 2013 Assets Current Assets: Cash Accounts receivable, net Inventory Prepaid Expenses S 60,000 $130,000 $210,000 S 20,000 $420,000 Total current assets Long-Term Assets: Land S 50,000 S 500,000 Buildings and equipment Less: Accumulated depreciation s(150,000) 350.000 $820,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income taxes payable Accrued expeneses payable s 70,000 S 50,000 S 30,000 $150,000 Total current liabilites $200,000 $350,000 Bonds payable, 9% due 2040 Total liabilities Stockholders' Equity $300,000 Capital Stock S30 par value, 10,000 shares outstanding Retained earnings S170,000 $470,000 Total stockholders' equity $820,000 Total liabilities and stockholders' equity