Ceramics, Inc. reported the following balance sheet for the year 2004. Balance Sheet For the year ending
Question:
Ceramics, Inc. reported the following balance sheet for the year 2004.
Balance Sheet
For the year ending December 31, 2004
Assets:
Cash ................$ 2,000
Accounts payable ........... 500
Inventory ............... 900
Equipment .............. 1,000
Land ................. 1,500
Total assets .............$ 6,000
Liabilities:
Accounts receivable ..........$ 3,000
Accrued liabilities ........... 1,000
Total liabilities ............. 4,000
Stockholders' equity:
Common stock ............. 1,800
Retained earnings ........... 5,100
Total stockholders' equity ........ 6,900
Total liabilities and stockholders' equity ...$10,900
Required
A. Identify and list the errors in the balance sheet above.
B. Prepare a corrected 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...
Step by Step Answer:
A 1 Company is not identified no company name in title 2 Date expressed incorrectly should be stated ...View the full answer
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
