Chapter 1, Problem 1.6BYP

To determine

Balance Sheet: Balance Sheet is a financial position statement classified into organization’s assets, stockholder’s equity and other liabilities at a particular date. One side is Organization’s assets and another side is stockholder’s equity and other liabilities. Both the sides should be balanced to each other.

To prepare: A memo to SA, the bookkeeper of Company N, explaining the reasons for incorrect balance sheet and how it should be corrected