GG Corporation, a private corporation, was formed on July 1,

GG Corporation, a private corporation, was formed on July 1, 2015. On July 31, Guy Gélinas, the company's president, prepared the following statement of financial position:

GG Corporation, a private corporation, was formed on July 1,

Guy admits that his knowledge of accounting is somewhat limited and is concerned that his statement of financial position might not be correct. He gives you the following additional information:
1. The boat actually belongs to Guy Gélinas, not to GG Corporation. However, because Guy thinks he might take customers out on the boat occasionally, he decided to list it as an asset of the company. To be consistent, he also included as a liability of the company the personal bank loan that he took out to buy the boat.
2. Included in the accounts receivable balance is $10,000 that Guy personally loaned to his brother five years ago. Guy included this in the receivables of GG Corporation so that he wouldn't forget that his brother owes him money.
3. Guy's statements didn't balance. To make them balance, he adjusted the Common Shares account until assets equaled liabilities and shareholders' equity.
(a) Identify any corrections that should be made to the statement of financial position and explain why.
(b) Prepare a corrected statement of financial position.
(c) What other financial statements should GG Corporation prepare, assuming it follows Accounting Standards for Private Enterprises?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...


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