Cash Accounts receivable Inventory Boat 1. 2. Assets 3. (b) Balance Sheet December 31, 2025 $22,000 53,000 38,000 25,000 Liabilities and Stockholders' Equity Accounts payable Notes payable Boat loan Stockholders' equity $32,600 Betty willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be correct. She has provided you with the following additional information. 17,000 21,400 67,000 The boat actually belongs to Betty, not to Cullumber Corporation. However, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. To be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. The inventory was originally purchased for $25,700, but due to a surge in demand Betty now thinks she could sell it for $38,000. She thought it would be best to record it at $38,000. Included in the accounts receivable balance is $10,000 that Betty loaned to her brother 5 years ago. Betty included this in the receivables of Cullumber Corporation so she wouldn't forget that her brother owes her money. Provide a corrected balance sheet for Cullumber Corporation. (Hint: To get the balance sheet to balance, adjust stockholders' equity.) (List assets in order of liquidity.)
Cash Accounts receivable Inventory Boat 1. 2. Assets 3. (b) Balance Sheet December 31, 2025 $22,000 53,000 38,000 25,000 Liabilities and Stockholders' Equity Accounts payable Notes payable Boat loan Stockholders' equity $32,600 Betty willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be correct. She has provided you with the following additional information. 17,000 21,400 67,000 The boat actually belongs to Betty, not to Cullumber Corporation. However, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. To be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. The inventory was originally purchased for $25,700, but due to a surge in demand Betty now thinks she could sell it for $38,000. She thought it would be best to record it at $38,000. Included in the accounts receivable balance is $10,000 that Betty loaned to her brother 5 years ago. Betty included this in the receivables of Cullumber Corporation so she wouldn't forget that her brother owes her money. Provide a corrected balance sheet for Cullumber Corporation. (Hint: To get the balance sheet to balance, adjust stockholders' equity.) (List assets in order of liquidity.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cullumber Corporation was formed on January 1, 2025. At December 31, 2025, Betty Harris, the president and sole stockholder, decided to prepare a
Transcribed Image Text:Cash
Accounts receivable
Inventory
Boat
1.
2.
Assets
3.
(b)
Cullumber Corporation
Balance Sheet
December 31, 2025
$22,000 Accounts payable
Notes payable
Boat loan
53,000
38,000
Liabilities and Stockholders'
Equity
25,000
Stockholders' equity
$32,600
Betty willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be correct. She has
provided you with the following additional information.
17,000
21,400
67,000
The boat actually belongs to Betty, not to Cullumber Corporation. However, because she thinks she might take customers out
on the boat occasionally, she decided to list it as an asset of the company. To be consistent, she also listed as a liability of the
corporation her personal loan that she took out at the bank to buy the boat.
The inventory was originally purchased for $25,700, but due to a surge in demand Betty now thinks she could sell it for
$38,000. She thought it would be best to record it at $38,000.
Included in the accounts receivable balance is $10,000 that Betty loaned to her brother 5 years ago. Betty included this in the
receivables of Cullumber Corporation so she wouldn't forget that her brother owes her money.
Provide a corrected balance sheet for Cullumber Corporation. (Hint: To get the balance sheet to balance, adjust stockholders' equity.)
(List assets in order of liquidity.)
Transcribed Image Text:+
+
=
=
=
CULLUMBER CORPORATION
Balance Sheet
Assets
Liabilities and Stockholders' Equity
$
$
$
$
$
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