Assignment:
Jane is the President of Def Jam Enterprises. Def Jam enterprises began business on January 1, 2008. The company's controller is out of the country on business. Jane needs a copy of the company's balance sheet for a meeting tomorrow and asks her assistant to obtain the required information from the company's records. She presents Jane with the following balance sheet. She asks you to review it for accuracy.
Def Jam Enterprises
Balance Sheet
December 31st, 2008
Assets
Accounts payable 29,600
Building and equipment 177,300
Cash 14,750
Cash dividends paid 16,000
Liabilities and Stockholder's equity
Accounts receivable 23,200
Supplies 12,200
Capital Stock 100,000
Net income for 2008 113,850
Required:
1. Prepare a corrected balance sheet (also can you please explain where the different items go and why).
2. Draft memo explaining the major differences between the balance sheet Jane's assistant prepared and the one you prepared.