The following list of balance sheet items are in random order for Wilson Farms, Inc., at September 30, 2011:

Instructions
a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar to that illustrated in Exhibit 2–10. (After “Barns and Sheds,” you may list the remaining assets in any order.) Include a proper heading for your balance sheet.
b. Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $13,700 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of thisbarn.

Transcribed Image Text:

Land Barns and Sheds Notes Payable Accounts Receivable Citrus Trees Accounts Payable Property Taxes Payable Capital Stock. .$490,000 78,300 . 330,000 22,365 76,650 77,095 9,135 290,000 Fences and GatesS 33,570 20,125 16,710 120,780 42,970 Irrigation System Cash Farm Machinery Retained Earnings . Wages Payable 5,820