Chapter 4, Problem 4.3TIF

To determine

Balance sheet:

A balance sheet is a financial statement that reports a company’s resources (assets) and claims of creditors (liabilities) and owner’s equity (owner’s equity’) over those resources, on a specific date. The resources of the company are assets which include money contributed by owner’s equity and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and owner’s equity. The balance of the assets account must be equal to that of the liabilities and the owner’s equity account.

To write: A memorandum to Person D explaining the errors in the A Company’s balance sheet, and the correct presentation for the balance sheet.