Your friend, Daniel Nat, recently began work as the lead accountant for the AshevilleCompany. Dan prepared the following balance sheet for December 31, 2018:Asheville CompanyBalance SheetFor the Year Ended December 31, 2018Assets$100,000Land.....Accounts payable......10,000Accounts receivable...12,500Cash.....10,000Daniel Nat, capital...235,000$367,500Total assets ...LiabilitiesEquipment ...Wages payable....$125,0002,500Total liabilities .$127,500White a brief memo to Daniel explaining the errors in the Asheville Companybalance sheet and the correct presentation for the balance sheet.

Question
Asked Dec 9, 2019
1 views
Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville
Company. Dan prepared the following balance sheet for December 31, 2018:
Asheville Company
Balance Sheet
For the Year Ended December 31, 2018
Assets
$100,000
Land.....
Accounts payable......
10,000
Accounts receivable...
12,500
Cash.....
10,000
Daniel Nat, capital...
235,000
$367,500
Total assets ...
Liabilities
Equipment ...
Wages payable....
$125,000
2,500
Total liabilities .
$127,500
White a brief memo to Daniel explaining the errors in the Asheville Company
balance sheet and the correct presentation for the balance sheet.
help_outline

Image Transcriptionclose

Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following balance sheet for December 31, 2018: Asheville Company Balance Sheet For the Year Ended December 31, 2018 Assets $100,000 Land..... Accounts payable...... 10,000 Accounts receivable... 12,500 Cash..... 10,000 Daniel Nat, capital... 235,000 $367,500 Total assets ... Liabilities Equipment ... Wages payable.... $125,000 2,500 Total liabilities . $127,500 White a brief memo to Daniel explaining the errors in the Asheville Company balance sheet and the correct presentation for the balance sheet.

fullscreen
check_circle

Expert Answer

Step 1

Memorandum is a written documents used by companies to c...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Other

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: At the end of April, the first month of operations, the following selected data were taken from the ...

A: Accounting EquationAccounting equation is an equation that defines the relationship between assets, ...

question_answer

Q: A business operated at 100% of capacity during its first month and incurred the following costs: ...

A: Variable costing is a method under which the direct costs are included which varies according to the...

question_answer

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East A...

A: 1.Prepare production budget for Supermix for the months July, August, September and October.

question_answer

Q: Nash's Trading Post, LLC purchased land adjacent to its plant to improve access for trucks making de...

A: The cost of acquiring land include all cost which are incurred for acquiring land like purchase pric...

question_answer

Q: On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-int...

A: Click to see the answer

question_answer

Q: Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It s...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

question_answer

Q: how do i calculate retained earnings

A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but n...

question_answer

Q: The following accounts appear in an adjusted trial balance of Waterloo Consulting. Indicate whether ...

A: Assets which can be converted into cash or cash equivalent within 12 months from the balance sheet a...

question_answer

Q: Pet Products Company uses an automated process to manufacture its pet replica products. For June, th...

A: Hence, the total equivalent units for direct materials is 15,000 and conversion costs is 17,875. Pro...