The following balance sheet for XYZ Corporation has a number of format, classification, and terminology deficiencies. Assume that all of the figures are correct. Balance Sheet Year Ended December 31, Year 3

assets

current assets:

cash in banks $11,800

due from customres & employees $9,700

less reserve for uncollectables 600

bond sinking fund 15,000

inventories 22,320

total current asstes 58,300

property, plamt& equipment

land& builldings 41,000

furniture & fixtures 17,600

used property held for sale 4,000

total 62,500

less accumulated depreciation 19,000
total property and equipment 43,600

deferred charges:
unamortized bond discount 1,200
supplies on hand 2,000
goodwill 14,000
total 17,200

other assets:
treasury stock(at cost) $6,600
total assets $124,500

equites

liabilities
accured bond interest expense $900
accounts & notes payable 21,000
bonds payable 30,000
accumulated other comprehensive income 10,000
total liabilites 61,900
$\begin{array}{|l|l|l|} \hline \text { Net worth: } & & \ \hline \text { Common Shares } & & 40,000 \ \hline \text { Retained earnings } & & 7,600 \\hline \text { Reserve for bond sinking fund } & & 15,000 \ \hline \text { Total net worth } && 62,600 \ \hline \text { Total equities } && \$ 124,500 \ \hline \end{array}$ Required: List 10 deficiencies in the above statement.

Question

The following balance sheet for XYZ Corporation has a number of format, classification, and terminology deficiencies. Assume that all of the figures are correct.
Balance Sheet
Year Ended December 31, Year 3

assets
current assets:
cash in banks		$11,800
due from customres & employees	$9,700
less reserve for uncollectables	600
bond sinking fund		15,000
inventories		22,320
total current asstes		58,300

property, plamt& equipment
land& builldings		41,000
furniture & fixtures		17,600
used property held for sale		4,000
total		62,500
less accumulated depreciation		19,000
total property and equipment		43,600

deferred charges:
unamortized bond discount		1,200
supplies on hand		2,000
goodwill		14,000
total		17,200

other assets:
treasury stock(at cost)		$6,600
total assets		$124,500

equites

liabilities
accured bond interest expense		$900
accounts & notes payable		21,000
bonds payable		30,000
accumulated other comprehensive income		10,000
total liabilites		61,900

$\begin{array}{|l|l|l|} \hline \text { Net worth: } & & \ \hline \text { Common Shares } & & 40,000 \ \hline \text { Retained earnings } & & 7,600 \\hline \text { Reserve for bond sinking fund } & & 15,000 \ \hline \text { Total net worth } && 62,600 \ \hline \text { Total equities } && \$ 124,500 \ \hline \end{array}$ Required: List 10 deficiencies in the above statement.

Quizplus · Accepted Answer

The Answer of The following balance sheet for XYZ Corporation has a number of format, classification, and terminology deficiencies. Assume that all of the figures are correct. Balance Sheet Year Ended December 31, Year 3

assets
current assets:
cash in banks		$11,800
due from customres & employees	$9,700
less reserve for uncollectables	600
bond sinking fund		15,000
inventories		22,320
total current asstes		58,300

property, plamt& equipment
land& builldings		41,000
furniture & fixtures		17,600
used property held for sale		4,000
total		62,500
less accumulated depreciation		19,000
total property and equipment		43,600

deferred charges:
unamortized bond discount		1,200
supplies on hand		2,000
goodwill		14,000
total		17,200

other assets:
treasury stock(at cost)		$6,600
total assets		$124,500

equites

liabilities
accured bond interest expense		$900
accounts & notes payable		21,000
bonds payable		30,000
accumulated other comprehensive income		10,000
total liabilites		61,900

$\begin{array}{|l|l|l|} \hline \text { Net worth: } & & \ \hline \text { Common Shares } & & 40,000 \ \hline \text { Retained earnings } & & 7,600 \\hline \text { Reserve for bond sinking fund } & & 15,000 \ \hline \text { Total net worth } && 62,600 \ \hline \text { Total equities } && \$ 124,500 \ \hline \end{array}$ Required: List 10 deficiencies in the above statement.

The Following Balance Sheet for XYZ Corporation Has a Number