Accountant / owner of Quick Renovations, C. Cloud leave town to inspect a job site. He asked his cousin, Joseph Jordan, to prepare Quick Renovations' December 31, 2018 balance sheet. His cousin had no education of accounting, but did know that the balance sheet had to balance, so, in order to accomplish this, he had to use a plugged figure for owner's equity. The other accounts have the correct balances, but the totals may not be right. Assets Cash Supplies Building Land Salary Expense Accounts Payable Rent Expense Total Assets Quick Renovations Balance Sheet December 31, 2018 2,000 4,500 85,000 120,000 80,000 25,000 12,000 328,500 Liabilities Service Revenue Mortgage Payable Accounts Receivable Total Liabilities 200,000 65,000 16,000 281,000 Owner's Equity C. Cloud, Capital 47,500 Total Liabilities & Owner's Equity 328,500 Question: Make the correct December 31, 2018 balance sheet for Quick Renovations.
Accountant / owner of Quick Renovations, C. Cloud leave town to inspect a job site. He asked his cousin, Joseph Jordan, to prepare Quick Renovations' December 31, 2018 balance sheet. His cousin had no education of accounting, but did know that the balance sheet had to balance, so, in order to accomplish this, he had to use a plugged figure for owner's equity. The other accounts have the correct balances, but the totals may not be right. Assets Cash Supplies Building Land Salary Expense Accounts Payable Rent Expense Total Assets Quick Renovations Balance Sheet December 31, 2018 2,000 4,500 85,000 120,000 80,000 25,000 12,000 328,500 Liabilities Service Revenue Mortgage Payable Accounts Receivable Total Liabilities 200,000 65,000 16,000 281,000 Owner's Equity C. Cloud, Capital 47,500 Total Liabilities & Owner's Equity 328,500 Question: Make the correct December 31, 2018 balance sheet for Quick Renovations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Accountant/ owner of Quick Renovations, C. Cloud leave town to inspect a job site.
He asked his cousin, Joseph Jordan, to prepare Quick Renovations' December 31,
2018 balance sheet. His cousin had no education of accounting, but did know that
the balance sheet had to balance, so, in order to accomplish this, he had to use a
plugged figure for owner's equity. The other accounts have the correct balances, but
the totals may not be right.
Assets
Cash
Supplies
Building
Land
Salary Expense
Accounts Payable
Rent Expense
Total Assets
Quick Renovations
Balance Sheet
December 31, 2018
2,000
4,500
85,000
120,000
80,000
25,000
12,000
328,500
Liabilities
Service Revenue
Mortgage Payable
Accounts Receivable
Total Liabilities
200,000
65,000
16,000
281,000
Owner's Equity
C. Cloud, Capital
47,500
Total Liabilities & Owner's Equity 328,500
Question:
Make the correct December 31, 2018 balance sheet for Quick Renovations.
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