The Finn brothers are concerned that the financial statements for Finns Fridges dont reflect the true state

The Finn brothers are concerned that the financial statements for Finns’ Fridges don’t reflect the true state of affairs. The company’s 25 customers were charged $10 for rent at the end of each month. Now that the academic year is over, five of these customers (students) have vacated their dormitory rooms without paying the last month’s rent on the refrigerators. Moreover, one student seems to have taken the refrigerator with him when he left! Douglas doubts the company will ever receive the late rental fees or retrieve the stolen fridge. Based on this, construct a new balance sheet and income statement for the company.

Twin brothers David and Douglas Finn started a small business from their college dormitory room. Finns’ Fridges purchased several small refrigerators to rent to other students for use in their rooms. At the end of their first year of operations, the brothers’ records showed the informationbelow.

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Current assets (cash and accounts receivable) Interest payable Other current liabilities Property and equipment (net) Long-term liabilities Owners' equity Revenues Interest expense Amortization expense $2,000 200 800 4,000 3,200 1,800 2,000 200 1,000