diane maynard made the following request of a friend mv bookkeeper has quit and i need to see th

1. First, we need to prepare the balance sheet. The balance sheet is divided into two parts: ass

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Diane Maynard made the following request of a friend: My bookkeeper has quit, and I need to see the balance sheets of my company. He has left behind a book with the numbers already entered in it. Would you be willing to prepare balance sheets for me? Also, any comments you care to make about the numbers would be appreciated. The Cash account is healthy, which is a good sign, and he has told me that the net income in June was $19,635. The book contained a detailed record of transactions, and from it, the friend was able to copy off the balances at the beginning of the month and at the end of the month as shown in Exhibit 1. Diane Maynard owned all the stock of Maynard Company. At the end of June, Diane Maynard paid herself an $11,700 dividend and used the money to repay her loan from the company. EXHIBIT 1 Account Balances June 1 June 30 Accounts payable $8,517 $21,315 Accounts receivable $21,798 $26,505 Accrued wages payable $1,974 $2,202 Accumulated depreciation on building $156,000 $157,950 Accumulated depreciation on equipment $5,304 $5,928 Bank notes payable $8,385 $29,250 Building $585,000 $585,000 Capital stock $390,000 $390,000 Cash $34,983 $66,660 Equipment (at cost) $13,260 $36,660 Land $89,700 $89,700 Merchandise inventory $29,835 $26,520 Note receivable, Diane Maynard $11,700 $0 Other noncurrent assets $4,857 $5,265 Other noncurrent liabilities $2,451 $2,451 Prepaid insurance $3,150 $2,826 Retained earnings $221,511 $229,446 Supplies on hand $5,559 $6,630 Taxes payable $5,700 $7,224

          Diane Maynard made the following request of a friend:

My bookkeeper has quit, and I need to see the balance sheets of my company. He has left behind a book with the numbers already entered in it. Would you be willing to prepare balance sheets for me? Also, any comments you care to make about the numbers would be appreciated. The Cash account is healthy, which is a good sign, and he has told me that the net income in June was $19,635.

The book contained a detailed record of transactions, and from it, the friend was able to copy off the balances at the beginning of the month and at the end of the month as shown in Exhibit 1. Diane Maynard owned all the stock of Maynard Company. At the end of June, Diane Maynard paid herself an $11,700 dividend and used the money to repay her loan from the company.

EXHIBIT 1 Account Balances
June 1
June 30
Accounts payable
$8,517
$21,315
Accounts receivable
$21,798
$26,505
Accrued wages payable
$1,974
$2,202
Accumulated depreciation on building
$156,000
$157,950
Accumulated depreciation on equipment
$5,304
$5,928
Bank notes payable
$8,385
$29,250
Building
$585,000
$585,000
Capital stock
$390,000
$390,000
Cash
$34,983
$66,660
Equipment (at cost)
$13,260
$36,660
Land
$89,700
$89,700
Merchandise inventory
$29,835
$26,520
Note receivable, Diane Maynard
$11,700
$0
Other noncurrent assets
$4,857
$5,265
Other noncurrent liabilities
$2,451
$2,451
Prepaid insurance
$3,150
$2,826
Retained earnings
$221,511
$229,446
Supplies on hand
$5,559
$6,630
Taxes payable
$5,700
$7,224

diane maynard made the following request of a friend mv bookkeeper has quit and i need to see the balance sheets of my company he has left behind a book with the numbers already entered in i 00277

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