The following balance sheet, prepared by a careless bookkeeper, has been given to you to review.
Required:
List any corrections that need to be made. Errors can be in classification, lack of disclosure, format, or terminology.
Eldorado, Inc. Balance Sheet For the Year Ended June 30, 2010 | ||
Assets | ||
Current Assets: |
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Accounts Receivable | $ 37,000 |
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Merchandise Inventory | 62,000 |
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Cash | 17,000 | $116,000 |
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Investments: |
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Marketable Securities | $ 18,000 |
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Treasury Stock | 4,000 | 22,000 |
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Tangible Assets: |
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Buildings | $194,000 |
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Less: Reserve for Depreciation | (34,000) | 160,000 |
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Other Assets: |
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Unamortized Portion of Bond Payable Discount |
| 3,000 |
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| $301,000 |
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Liabilities and Stockholders' Equity | ||
Current Liabilities: |
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Accounts Payable | $ 26,000 |
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Bank Note Payable (due 6/1/2011) | 22,000 | $ 48,000 |
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Long-Term Liabilities: |
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Bonds Payable |
| 112,000 |
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Capital Stock: |
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Common Stock | $ 49,000 |
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Earned Surplus | 92,000 |
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| 141,000 |
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| $301,000 |
11 years ago
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