prepare a december 31 2007 balance sheet for the baggett company 562595

Balance Sheet The balance sheet accounts and amounts of the Baggett Company as of December 31, 2007 are shown in random order as follows:

Account

Debit (Credit)

Account

Debit (Credit)

Income taxes payable

$3,800

Premium on preferred stock

$7,900

Prepaid items

1,800

Allowance for doubtful accounts

1,600

Premium on common stock

9,300

Bonds payable (due 2017)

23,000

Land

12,200

Buildings

57,400

Notes payable (due 2010)

6,000

Sinking fund to retire bonds payable

5,000

Notes receivable (due 2009)

16,400

Advances from customers (long term)

2,600

Accounts receivable

12,600

Cash

4,300

Premium on bonds payable

1,400

Accumulated depreciation: equipment

9,700

Account

Debit (Credit)

Account

Debit
(Credit)

Accounts payable

13,100

Retained earnings

18,300

Inventory

7,400

Preferred stock, $100 par

18,600

Accumulated depreciation: buildings

21,000

Wages payable

1,400

Patents (net)

4,600

Common stock, $10 par

12,700

Equipment

28,700

Required

1. Prepare a December 31, 2007 balance sheet for the Baggett Company.

2. Compute the debt ratio.

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