Chapter 11, Problem 13QS

To determine

Stockholder’s Equity:

It refers to the total amount of money that belongs to the shareholders of the company. It can be equity shareholders or preference shareholders.

Notes Payable:

Notes payable is a promissory note, which show the agreement between the borrower and the lender, in which borrower agrees to pay principle amount with its interest.

To explain: Correction of a mistake in recording payment of notes payable.