The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owners’ equity. NOT: retained earnings = net profit, capital stock = capital WILLIS TRANSPORTATION SERVICE Manager’s Report 8 P.M. Thursday Assets Owners' Equity Capital stock $ 93,000 Accounts receivable $ 70,000 Retained Earnings 63,000 Notes payable 283,000 Cash 77,000 Supplies 15,000 Building 100,000 Land 71,000 Automobiles 165,000 Accounts payable 59,000 $ 498,000 $ 498,000 Prepare a corrected balance sheet. WILLIS TRANSPORTATION SERVICE Assets Liabilities & Owners' Equity Liabilities: Total liabilities $0 Owners’ equity: Total Assets $0 Total Liabilities & Owners' Equity $0
The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owners’ equity. NOT: retained earnings = net profit, capital stock = capital WILLIS TRANSPORTATION SERVICE Manager’s Report 8 P.M. Thursday Assets Owners' Equity Capital stock $ 93,000 Accounts receivable $ 70,000 Retained Earnings 63,000 Notes payable 283,000 Cash 77,000 Supplies 15,000 Building 100,000 Land 71,000 Automobiles 165,000 Accounts payable 59,000 $ 498,000 $ 498,000 Prepare a corrected balance sheet. WILLIS TRANSPORTATION SERVICE Assets Liabilities & Owners' Equity Liabilities: Total liabilities $0 Owners’ equity: Total Assets $0 Total Liabilities & Owners' Equity $0
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 2SEQ: The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash...
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The night manager of Willis Transportation Service, who had no accounting background, prepared the following
NOT:
WILLIS TRANSPORTATION SERVICE Manager’s Report 8 P.M. Thursday |
|||||
Assets | Owners' Equity | ||||
Capital stock | $ | 93,000 | $ | 70,000 | |
Retained Earnings |
63,000 | Notes payable | 283,000 | ||
Cash | 77,000 | Supplies | 15,000 | ||
Building | 100,000 | Land | 71,000 | ||
Automobiles | 165,000 | Accounts payable | 59,000 | ||
$ | 498,000 | $ | 498,000 | ||
Prepare a corrected balance sheet.
|
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