Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared

Question:

Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following balance sheet for December 31, 2018:

Asheville Company

Balance Sheet

For the Year Ended December 31, 2018

Assets

Land. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . $100,000

Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Accounts receivable. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 12,500

Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Daniel Nat, capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235,000

Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $367,500

Liabilities Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . $125,000

Wages payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500

Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $127,500

White a brief memo to Daniel explaining the errors in the Asheville Company balance sheet and the correct presentation for the balance sheet.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...