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 WILLIS TRANSPORTATION SERVICEManager’s Report8 P.M. ThursdayAssetsOwners' EquityCapital stock$93,000Accounts receivable$70,000Retained Earnings 63,000Notes payable 283,000Cash 77,000Supplies 15,000Building 100,000Land 71,000Automobiles 165,000Accounts payable 59,000 $498,000 $498,000 Prepare a corrected balance sheet. WILLIS TRANSPORTATION SERVICE AssetsLiabilities & Owners' Equity Liabilities: Total liabilities$0 Owners’ equity: Total Assets$0Total Liabilities & Owners' Equity$0 The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for tcompany at February 28, current year. The dollar amounts were taken directly from the company's accounting records and are corHowever, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owneequity.NOT: retained earnings = net profit, capital stock =capitalWILLIS TRANSPORTATION SERVICEManager's Report8 P.M. ThursdayOwners' EquityAccounts receivableAssets$ 70,000283,00015,00071,00059,000Capital stockRetained Earnings$93,00063, 00ө77,000100,000165,000Notes payableSuppliesCashBuildingLandAutomobilesAccounts payable2$498,000$ 498,000Prepare a corrected balance sheet.WILLIS TRANSPORTATION SERVICEAssetsLiabilities & Owners' EquityLiabilities:Total liabilities$Owners' equity:Total Assets0 Total Liabilities & Owners' Equity$

The balance sheet is prepared with an accounting equation of assets= liabilities + owners equity So…

Answered: The night manager of Willis…

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

WILLIS TRANSPORTATION SERVICE Manager’s Report 8 P.M. Thursday
Assets	Owners' Equity
Capital stock	$	93,000	Accounts receivable	$	70,000
Retained Earnings		63,000	Notes payable		283,000
Cash		77,000	Supplies		15,000
Building		100,000	Land		71,000
Automobiles		165,000	Accounts payable		59,000
	$	498,000		$	498,000

Prepare a corrected balance sheet.

WILLIS TRANSPORTATION SERVICE


Assets	Liabilities & Owners' Equity
	Liabilities:



		Total liabilities	$0
		Owners’ equity:



Total Assets	$0	Total Liabilities & Owners' Equity	$0

The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for t
company at February 28, current year. The dollar amounts were taken directly from the company's accounting records and are cor
However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owne
equity.
NOT: retained earnings = net profit, capital stock =
capital
WILLIS TRANSPORTATION SERVICE
Manager's Report
8 P.M. Thursday
Owners' Equity
Accounts receivable
Assets
$ 70,000
283,000
15,000
71,000
59,000
Capital stock
Retained Earnings
$
93,000
63, 00ө
77,000
100,000
165,000
Notes payable
Supplies
Cash
Building
Land
Automobiles
Accounts payable
2$
498,000
$ 498,000
Prepare a corrected balance sheet.
WILLIS TRANSPORTATION SERVICE
Assets
Liabilities & Owners' Equity
Liabilities:
Total liabilities
$
Owners' equity:
Total Assets
0 Total Liabilities & Owners' Equity
$

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