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Purple Company: Prepare a Balance Sheet in good form

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The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011

Purple Company
Balance Sheet
as of December 31, 2011

Cash $ 80,000 Accounts payable $ 75,000
Accounts receivable (net) 52,200 Long-term liabilities 100,000
Inventories 57,000 Stockholders' equity 218,500
Investments 76,300
Equipment (net) 96,000
Patents 32,000
$393,500 $393,500

The following additional information is provided:

(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted.

(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $60,000;
(b) accounts receivable 0;
(c) allowance for doubtful accounts $3,800.

(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.

(4) Investments include investments in common stock, trading $13,000 and available-for-sale $48,300, and franchises $15,000.

(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.

(6) An unrecorded liability was not recorded on the balance sheet of $2000.

Prepare a balance sheet in good form (stockholders' equity details can be omitted.)

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