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
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...
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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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