[Lyna6191]

Axion Corporation
Worksheet
December 31, 201X

Original Balance Sheet
Accounts Dr Cr

Cash 32,500

Accounts receivable 174,175

Land 540,000

Building

Equipment

Prepaid expenses 14,000

Patent 17,000

Inventory 50,000

Accounts payable 54,300

Mortgage payable 150,000

Taxes payable 40,000

Unearned revenue 11,000

Common stock 50,000

Retained earnings 522,375







Totals 827,675 827,675


That's my Original Balance Sheet but I need help to do my adjustment.

1) cash included a cutmer's check in the amount of $2,000 that was deposited on December 28, but was returned marked "NSF" on January 4th, the following year. The customer has gone out of business and cannot be located.

2) it is estimated at 5% of the receivables will be uncollectible.

3)a review of the land, landing and equipment account indicated the land cost $140,000. The building cost $400,000 and the equipment cost $100,000. Depreciation on the building has been calculated on the straight-line method using a 40 year useful life, and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight- line method with a useful life of 10 years.

4)the patent was purchased on January 2nd of the current year and has a legal life of 17 years. No amortization has been recorded for the current period.

5) $5,000 of the mortgage payable is due within the next 12 months.

6) $11,000 was recorded an unearned revenue when it was received in advance for a customer's order back in September. The goods were shipped on octobe 15th of the current year.

7) common stock represents 5,000 shares of $1 par common. It was all sold for $10 per share

8)the company was notified on January 15th(after the year end), that it is being sued for 10,000,000