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Prepare a corrected balance sheet.

Prepare a corrected balance sheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. 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. NOT: retained earnings = net profit, capital stock = capital %3D WILLIS TRANSPORTATION SERVICE Manager's Report 8 P.M. Thursday Assets Owners' Equity Accounts Capital stock 92,000 $ 72,000 receivable Retained Earnings Cash Notes payable 62,000 74,000 90,000 165,000 483,000 282,000 12,000 70,000 47,000 $ 483,000 Supplies Land Building Automobiles Accounts payable $ Prepare a corrected balance sheet. WILLIS TRANSPORTATION SERVICE Assets Liabilities & Owners' Equity Liabilities: Total liabilities Owners' equity: Total Assets Total Liabilities & Owners' Equity
Transcribed Image Text:The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. 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. NOT: retained earnings = net profit, capital stock = capital %3D WILLIS TRANSPORTATION SERVICE Manager's Report 8 P.M. Thursday Assets Owners' Equity Accounts Capital stock 92,000 $ 72,000 receivable Retained Earnings Cash Notes payable 62,000 74,000 90,000 165,000 483,000 282,000 12,000 70,000 47,000 $ 483,000 Supplies Land Building Automobiles Accounts payable $ Prepare a corrected balance sheet. WILLIS TRANSPORTATION SERVICE Assets Liabilities & Owners' Equity Liabilities: Total liabilities Owners' equity: Total Assets Total Liabilities & Owners' Equity
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