Problem 5
The balance sheet account balances of the Damitio Inn at the end of 20X3 are as follows:
Cash
Accounts receivable
Allowance for doubtful accounts
Food inventory
Prepaid insurance
Investments (long-term)
Land
Building
Equipment
Accumulated depreciation-building
Accumulated depreciation-equipment
Deferred income taxes, current assets
Organization costs (unamortized)
Accounts payable
Wages payable
Income taxes payable
Current maturities of long-term debt
Long-term debt
Deferred income taxes (long-term liability)
Common stock
Paid-in capital in excess of par
Retained earnings
$ 10,000
150,000
10,000
50,000
12,000
100,000
300,000
14,000,000
800,000
2,500,000
200,000
50,000
50,000
50,000
20,000
30,000
80,000
9,920,000
150,000
500,000
1,000,000
1,062,000
Required:
Prepare the balance sheet in accordance with the USALI.
