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The following balance sheet was prepared by the bookkeeper for Kraus Company as of December 31, 2010.Cash 80,000A/R (Net) 52,200Inventories 57,000Investments 76,300Equipment (Net) 96,000Patents 32,000Total 393,500A/P 75,000Long-Term Liabilities 100,000Stockholder’s Equity 218,500Total 393,500The following additional information is provided:1) Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.2) The net a/r balance includes:(a)a/r debit: 60,000(b)a/r credit: 4,000(c)allowance for doubtful accts: 3,8003) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.4) Investments include investments in common stock, trading $19,000 and available for sale $48,300 and franchises $9,000.5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.Prepare a balance sheet in good form (Stockholder’s equity details can be omitted.)
Kraus CompanyBalance SheetAs of December 31, 2010AssetsCurrent assetsCashTrading securitiesAccounts receivableLess: Allowance for doubtful accountsInventoriesEquipment held for saleTotal…
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