Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s balance sheet to balance. She finally got it to balance, but she still isn’t sure that it is correct. Samco Company, Inc. Balance Sheet For the Month Ended December 31, 2022 Assets Liabilities and Stockholders’ Equity Equipment $18,000 Common stock $12,000 Cash 9,000 Accounts receivable (6,000 ) Supplies 1,000 Dividends (2,000 ) Accounts payable (4,000 ) Notes payable 10,000 Total assets $24,000 Retained earnings 10,000 Total liabilities and stockholders’ equity $24,000 Prepare a correct balance sheet. (List assets in order of liquidity.) Explain to Marci Ling in a memo the purpose of a balance sheet and why this balance sheet is incorrect.
Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s balance sheet to balance. She finally got it to balance, but she still isn’t sure that it is correct. Samco Company, Inc. Balance Sheet For the Month Ended December 31, 2022 Assets Liabilities and Stockholders’ Equity Equipment $18,000 Common stock $12,000 Cash 9,000 Accounts receivable (6,000 ) Supplies 1,000 Dividends (2,000 ) Accounts payable (4,000 ) Notes payable 10,000 Total assets $24,000 Retained earnings 10,000 Total liabilities and stockholders’ equity $24,000 Prepare a correct balance sheet. (List assets in order of liquidity.) Explain to Marci Ling in a memo the purpose of a balance sheet and why this balance sheet is incorrect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s
|
Samco Company, Inc.
Balance Sheet For the Month Ended December 31, 2022 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Assets
|
Liabilities and
|
||||||||
|
Equipment
|
$18,000 |
Common stock
|
$12,000 | ||||||
|
Cash
|
9,000 |
|
(6,000 | ) | |||||
|
Supplies
|
1,000 |
Dividends
|
(2,000 | ) | |||||
|
Accounts payable
|
(4,000 | ) |
Notes payable
|
10,000 | |||||
|
Total assets
|
$24,000 |
|
|
10,000 | |||||
|
Total liabilities and
stockholders’ equity |
$24,000 |
Prepare a correct balance sheet. (List assets in order of liquidity.)
Explain to Marci Ling in a memo the purpose of a balance sheet and why this balance sheet is incorrect.
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