The following balance sheet was prepared by the accountant for Midway Company.

Midway Company

Balance Sheet

June 30, 2013

Assets

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,500

Investment securities-Trading (includes long-term investment

of $275,000 in stock of Bahen Builders) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328,700

Inventories (net of amount still due suppliers of $50,000) . . . . . . . . . . . . . . . . . . . . . . . 585,100

Prepaid expenses (includes a deposit of $25,000 made on inventories

to be delivered in 18 months) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,000

Property, plant, and equipment (excluding $60,000 of equipment still in use,

but fully depreciated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 270,000

Goodwill (based on estimate by the president of Midway Company) . . . . . . . . . . . . . . . 85,000

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,379,300

Liabilities and Owners' Equity

Notes payable ($95,000 due in 2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000

Accounts payable (not including amount due to suppliers of inventory-see above) . . . 190,000

Long-term liability under pension plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000

Retained earnings restricted for building expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000

Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000

Taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000

Bonds payable (net of discount of $25,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

Deferred income tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,000

Common stock (15,000 shares, $1 par) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,200

Unrestricted retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,100

Total liabilities and owners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,379,300

Instructions:

Prepare a corrected classified balance sheet using appropriate account titles.