E5-6B (Corrections of a Balance Sheet) The bookkeeper for Odie Company has prepared the following balance sheet as of June 30, 2014.

E5-6B (Corrections of a Balance Sheet) The bookkeeper for Odie Company has prepared the following

balance sheet as of June 30, 2014.

                                                                      ODIE COMPANY

                                                                     BALANCE SHEET

                                                                  AS OF JUNE 30, 2014

Cash                                           $ 26,500                  Notes and accounts payable     $ 126,000

Accounts receivable (net)           81,000                  Long-term liabilities                          50,000

Inventories                                    93,000                   Stockholders’ equity                       261,500

Equipment (net)                         187,000                                                                              $437,500

Goodwill                                        50,000

                                                   $437,500

The following additional information is provided.

1. Cash includes $800 in a petty cash fund and $14,000 in a bond sinking fund.

2. The net accounts receivable balance is comprised of the following three items: (a) accounts receivable—debit balances $96,000; (b) accounts receivable—credit balances $8,000; (c) allowance for doubtful accounts $7,000.

3. Merchandise inventory costing $11,200 was shipped out on consignment on June 30, 2014. The ending inventory balance does not include the consigned goods. Receivables in the amount of $11,200 were recognized on these consigned goods.

4. Equipment had a cost of $260,000 and an accumulated depreciation balance of $73,000.

5. Taxes payable of $21,500 were accrued on June 30. Odie 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 June 30, 2014, from the available information, adjusting the account balances using the additional information.