Acc550 Intermediate Accounting: Project 1—Balance sheet format (Jasper Industries Inc)

Acc550 Intermediate Accounting
Project 1—Balance sheet format
The following balance sheet has been submitted to you by an inexperienced bookkeeper. List your suggestions for improvements in the format of the balance sheet. Consider both terminology deficiencies as well as classification inaccuracies.
Jasper Industries, Inc.
Balance Sheet
For the Period Ended 12/31/10
Assets
Fixed Assets—Tangible
Equipment 110,000
Less: reserve for depreciation (40,000) 70,000
Factory supplies 22,000
Land and buildings 400,000
Less: reserve for depreciation (150,000) 250,000
Plant site held for future use 90,000 432,000
Current Assets
Accounts receivable 175,000
Cash 80,000
Inventory 220,000
Treasury stock (at cost) 20,000 495,000
Fixed Assets--Intangible
Goodwill 80,000
Notes receivable 40,000
Patents 26,000 146,000
Deferred Charges
Advances to salespersons 60,000
Prepaid rent 27,000
Returnable containers 75,000 162,000
TOTAL ASSETS $1,235,000
Liabilities
Current Liabilities
Accounts payable 140,000
Allowance for doubtful accounts 8,000
Common stock dividend distributable 35,000
Income taxes payable 42,000
Sales taxes payable 17,000 242,000
Long-Term Liabilities, 5% debenture bonds, due 2013 500,000
Reserve for contingencies 150,000 650,000
TOTAL LIABILITIES 892,000
Equity
Capital stock, $10.00 par value, issued 12,000 shares with 60 shares held as treasury stock 150,000
Capital surplus 90,000
Dividends paid (20,000)
Earned surplus 123,000
TOTAL EQUITY 343,000
TOTAL LIABILITIES AND EQUITY $1,235,000

Please list all deficiencies and why they should be adjusted. Note: The balance sheet, even with all the corrections, will not balance when completed. Just list the errors found on the statement below and submit to your instructor in your Dropbox.
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