The night manager of Dixie Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2011. The dollar amounts were taken directly from the company's accounting records and are correct. However, the balance sheet con- tains a number of errors in its headings, format, and the classification of assets, liabilities, and owners' equity. DIXIE TRANSPORTATION SERVICE MANAGER's REPORT 8 P.M. THURSDAY Assets Owners' Equity $ 92,000 Capital Stock Retained Earnings Accounts Receivable $ 70,000 Notes Payable Supplies ... Land..... Accounts Payable... 62,000 288,000 Cash..... 69,000 14,000 Building 80,000 70,000 Automobiles . 165,000 $468,000 26,000 $468,000 Prepare a corrected balance sheet. Include a proper heading.

The night manager of Dixie Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2011. The dollar amounts were taken directly from the company's accounting records and are correct. However, the balance sheet con- tains a number of errors in its headings, format, and the classification of assets, liabilities, and owners' equity. DIXIE TRANSPORTATION SERVICE MANAGER's REPORT 8 P.M. THURSDAY Assets Owners' Equity $ 92,000 Capital Stock Retained Earnings Accounts Receivable $ 70,000 Notes Payable Supplies ... Land..... Accounts Payable... 62,000 288,000 Cash..... 69,000 14,000 Building 80,000 70,000 Automobiles . 165,000 $468,000 26,000 $468,000 Prepare a corrected balance sheet. Include a proper heading.

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

16. You are required to solve this problem very carefully.
The night manager of Dixie Transportation Service, who had no accounting background, prepared
the following balance sheet for the company at February 28, 2011. The dollar amounts were taken
directly from the company's accounting records and are correct. However, the balance sheet con-
tains a number of errors in its headings, format, and the classification of assets, liabilities, and
owners' equity.
DIXIE TRANSPORTATION SERVICE
MANAGER'S REPORT
8 P.M. THURSDAY
Assets
Owners' Equity
Capital Stock ....
Retained Earnings
Cash.....
$ 92,000
Accounts Receivable
$ 70,000
62,000
Notes Payable
288,000
....
69,000
Supplies
14,000
Building
80,000
Land ....
70,000
Automobiles .
165,000
Accounts Payable.
26,000
$468,000
$468,000
Prepare a corrected balance sheet. Include a proper heading.

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