Share
Explore BrainMass

The comparative balance sheet of Stuart Company

12. The comparative balance sheet of Stuart Company appears below: 20pt

STUART COMPANY
Comparative Balance Sheet
December 31,

Assets 2007 2006
Current assets $ 340 $280
Plant assets 675 520
Total assets $1,015 $800

Liabilities and stockholders
' equity
Current liabilities $ 180 $120
Long-term debt 250 160
Common stock 325 320
Retained earnings 260 200
Total liabilities
and stockholders' equity $1,015 $800

Instructions
(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year.
(b) Using vertical analysis, prepare a common size comparative balance sheet.

13. The Brawn Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2007, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: 20pts
Estimated Percentage
Uncollectible
Current Accounts $140,000 1%
1-30 days past due 15,000 3%
31-60 days past due 12,000 6%
61-90 days past due 5,000 12%
Over 90 days past due 7,000 30%
Total Accounts Receivable $179,000

Instructions
a) Prepare the Estimated Uncollectible schedule for each percentage.
b) Prepare the adjusting entry on December 31, 2007, to recognize bad debts expense.

Attachments

Solution Summary

This solution provides a detailed, step by step explanation of the given question.

$2.19