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:

 

 

        Accounts Receivable

$ 37,000 

 

       Merchandise Inventory

 62,000 

 

       Cash

  17,000 

$116,000

 

 

 

Investments:

 

 

        Marketable Securities

$ 18,000 

 

        Treasury Stock

   4,000 

 22,000

 

 

 

Tangible Assets:

 

 

        Buildings

$194,000 

 

       Less: Reserve for Depreciation

 (34,000)

 160,000

 

 

 

Other Assets:

 

 

       Unamortized Portion of Bond Payable Discount

 

   3,000

 

 

$301,000

 

 

 

Liabilities and Stockholders' Equity

Current Liabilities:

 

 

       Accounts Payable

$ 26,000 

 

        Bank Note Payable (due 6/1/2011)

  22,000 

$ 48,000

 

 

 

Long-Term Liabilities:

 

 

        Bonds Payable

 

 112,000

 

 

 

Capital Stock:

 

 

       Common Stock

$ 49,000 

 

        Earned Surplus

  92,000 

 

 

 

 141,000

 

 

$301,000

 

 

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