Preparing a corrected balance sheet


Problem:

Can you please show me how to do this...The night manager of Majestic Limousines Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2002. 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.

Majestic Limo
Managers Report

Assets
Capitaol Stock    $100,000
Retained Earnings $62,000
Cash    $69,000
Building    $80,000
Automobiles    $165,000
$476,000

Owner's Equity
Accounts Receivable    $78,000
Notes Payable    $288,000
Supplies    $14,000
Land    $70,000
Accounts Payable    $26,000
$476,000

Please help me prepare a corrected balance sheet and include proper headers.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Preparing a corrected balance sheet
Reference No:- TGS01882962

Now Priced at $25 (50% Discount)

Recommended (90%)

Rated (4.3/5)