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E5-5 Bruno Company has decided to

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E5-5 (Preparation of a Corrected Balance Sheet) Bruno Company has decided to expand its operations.
The bookkeeper recently completed the balance sheet presented on the next page in order to obtain
additional funds for expansion

BRUNO COMPANY
BALANCE SHEET
DECEMBER 31, 2010
Current assets
Cash $260,000
Accounts receivable (net) 340,000
Inventories at lower of average cost or market 401,000
Trading securities—at cost (fair value $120,000) 140,000
Property, plant, and equipment
Building (net) 570,000
Office equipment (net) 160,000
Land held for future use 175,000

and so on ....

Instructions
Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation
balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful
accounts has a balance of $17,000. The pension obligation is considered a long-term liability.

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