Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following additional information is provided: 1. Cash includes $800 in a petty cash fund and $13,000 in a bond sinking fund. 2. The net

image text in transcribedimage text in transcribed The following additional information is provided: 1. Cash includes $800 in a petty cash fund and $13,000 in a bond sinking fund. 2. The net accounts receivable balance is comprised of the following three items: (a) accounts receivable-debit balances $99,780; (b) accounts receivable-credit balances $8,000; (c) allowance for doubtful accounts $7,000. 3. Inventory costing $5,595 was shipped out on consignment on June 30,2025 . The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,595 were recognized on these consigned goods. 4. Equipment had a cost of $263,780 and an accumulated depreciation balance of $76,780. 5. Taxes payable of $21,500 were accrued on June 30 . Blossom 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 taxes payable amount. Prepare a corrected classified balance sheet as of June 30, 2025, from the available information, adjusting the account balances using the additional information. (List Current Assets in order of liquidity.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions