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The following balance sheet was prepared by the bookkeeper for Pharoah Company as of December 31, 2020. Pharoah Company Balance Sheet as of December 31,
The following balance sheet was prepared by the bookkeeper for Pharoah Company as of December 31, 2020. Pharoah Company Balance Sheet as of December 31, 2020 Cash $90,000 Accounts payable Accounts receivable (net) 51,600 Bonds payable Inventory 59,000 Stockholders' equity Investments 78,500 Equipment (net) 105,000 Patents 32,000 $416,100 $84,000 100,000 232,100 $416,100 The following additional information is provided: 1. 2. Cash includes the cash surrender value of a life insurance policy $8,500, and a bank overdraft of $2,700 has been deducted. The net accounts receivable balance includes: (a) accounts receivable-debit balances $59,000; (b) accounts receivable-credit balances $3,800; (c) allowance for doubtful accounts $3,600. Inventory does not include goods costing $2,500 shipped out on consignment. Receivables of $2,500 were recorded on these goods. Investments include investments in common stock, trading $20,500 and available-for-sale $49,500, and franchises $8,500. Equipment costing $4,500 with accumulated depreciation $3,500 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000. 3. 4. 5. Pharoah Company Balance Sheet As of December 31, 2020 Assets $ Equipment Goodwill Equipment Held for Sale Available-for-Sale Securities Cash Surrender Value Bank Overdraft Patents Inventories Accumulated Depreciation Bonds Payable Trading Securities Franchises Unearned Revenue Land and Buildings Accounts Receivable Cash Allowance for Doubtful Accounts Prepaid Expenses Total Current Assets $ Accounts Investments Cash Surrender Value Available-for-Sale Securities Property, Plant and Equipment Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Bank Overdraft Accumulated Depreciation Equipment Amounts due to customers Inventories Bonds Payable Bank Overdraft Accounts Receivable Patents Prepaid Expenses Equipment Held for Sale Goodwill Cash Franchises Available-for-Sale Securities Trading Securities Allowance for Doubtful Accounts Land and Buildings Cash Surrender Value Accounts Payable ity $
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