Bookkeeper of ABC & Company. prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner's equity amount needed to achieve this balance. The owner's equity amount, however, is not correct. All other amounts are accurate, but some are out of place. ABC & Company. Balance Sheet Month Ended July 31, 2021 Assets Liabilities Cash 12,000 Account Receivable 3,000 Office Supplies 1,000 Services-revenue 68,000 Land 44,000 Property tax expense 800 Salary Expense 2,500 Account Payable 9,000 Office Furniture 8,000 Note payable 16,000 Owner’s Equity Rent Payable 4,000 Owner’s Equity 6,700 Total Assets 87,500 87,500 Required: Prepare the correct balance sheet, and date it correctly. Compute total assets, total liabilities, and owner's equity. Identify the accounts that should not be presented on the balance sheet.
Bookkeeper of ABC & Company. prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner's equity amount needed to achieve this balance. The owner's equity amount, however, is not correct. All other amounts are accurate, but some are out of place. ABC & Company. Balance Sheet Month Ended July 31, 2021 Assets Liabilities Cash 12,000 Account Receivable 3,000 Office Supplies 1,000 Services-revenue 68,000 Land 44,000 Property tax expense 800 Salary Expense 2,500 Account Payable 9,000 Office Furniture 8,000 Note payable 16,000 Owner’s Equity Rent Payable 4,000 Owner’s Equity 6,700 Total Assets 87,500 87,500 Required: Prepare the correct balance sheet, and date it correctly. Compute total assets, total liabilities, and owner's equity. Identify the accounts that should not be presented on the balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bookkeeper of ABC & Company. prepared the company's
ABC & Company.
Balance Sheet
Month Ended July 31, 2021
|
Assets |
Liabilities |
||
|
Cash |
12,000 |
|
3,000 |
|
Office Supplies |
1,000 |
Services-revenue |
68,000 |
|
Land |
44,000 |
Property tax expense |
800 |
|
Salary Expense |
2,500 |
Account Payable |
9,000 |
|
Office Furniture |
8,000 |
|
|
|
Note payable |
16,000 |
Owner’s Equity |
|
|
Rent Payable |
4,000 |
Owner’s Equity |
6,700 |
|
Total Assets |
87,500 |
|
87,500 |
|
|
|
|
|
Required:
- Prepare the correct balance sheet, and date it correctly. Compute total assets, total liabilities, and
owner's equity.
- Identify the accounts that should not be presented on the balance sheet.
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