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The Following Balance Sheet for XYZ Corporation Has a Number

Question 104

Essay

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

 Net worth:  Common Shares 40,000 Retained earnings 7,600 Reserve for bond sinking fund 15,000 Total net worth 62,600 Total equities $124,500\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.

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