The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2008.

The following additional information is provided.
1. Cash includes $1,200 in a petty cash fund and $15,000 in a bond sinking fund.
2. The net accounts receivable balance is comprised of the following three items:
(a) Accounts receivable€”debit balances $52,000;
(b) Accounts receivable€”credit balances $8,000;
(c) Allowance for doubtful accounts $3,500.
3. Merchandise inventory costing $5,300 was shipped out on consignment on July 31, 2008. The ending inventory balance does not include the consigned goods. Receivables in the amount of $5,300 were recognized on these consigned goods.
4. Equipment had a cost of $112,000 and an accumulated depreciation balance of $28,000.
5. Taxes payable of $6,000 were accrued on July 31. Geronimo 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.

Instructions
Prepare a corrected classified balance sheet as of July 31, 2008, from the available information, adjusting the account balances using the additionalinformation.

Transcribed Image Text:

Geronimo Company Balance Sheet July 31, 2008 0,500 Long-term liabilities 84,000 Cash 69,000 Notes and accounts payable 44,000 75,000 155,500 Accounts receivable (net 0,000 Stckholders' equity Equipment (net) Patents $274,500 21,000 $274,500