Accountant and owner of Quick Renovations, C. Cloud had to go out of town to inspect a job site. Thus, he asked his cousin, Joseph Jordan, to prepare Quick Renovations’ December 31, 2018 balance sheet. Joseph Jordan had no knowledge of accounting, but he did know that the balance sheet had to balance; therefore, in order to accomplish this, he had to use a plugged figure for owner’s equity. The other accounts have the correct balances, but the totals may not be correct.

 

Required:

Prepare the correct December 31, 2018 balance sheet of Quick Renovations.

Transcribed Image Text:

Quick Renovations Balance Sheet December 31, 2018 Assets Liabilities Cash Service Revenue 200,000 2,000 4,500 Mortgage Payable Accounts Receivable 65,000 16,000 281,000 Supplies Building 85,000 Land 120,000 80,000 25,000 12,000 328,500 Total Liabilities Salary Expense Accounts Payable Rent Expense Owner's Equity C. Cloud, Capital Total Liabilities & Owner's Equity 328,500 47,500 Total Assets Quick Renovations Balance Sheet December 31, 2018 Assets Liabilities Cash Service Revenue 200,000 2,000 4,500 Mortgage Payable Accounts Receivable 65,000 16,000 281,000 Supplies Building 85,000 Land 120,000 80,000 25,000 12,000 328,500 Total Liabilities Salary Expense Accounts Payable Rent Expense Owner's Equity C. Cloud, Capital Total Liabilities & Owner's Equity 328,500 47,500 Total Assets

Answer rating: 100% (QA)

First find the net income Next draw ... View the full answer