Lori Milner is the bookkeeper for Philco Company, Inc. Lori has been trying to get the companys
Question:
Lori Milner is the bookkeeper for Philco Company, Inc. Lori has been trying to get the company’s balance sheet to balance. She finally got it to balance, but she still isn’t sure that it is correct.
Instructions
Explain to Lori Milner in a memo (a) the purpose of a balance sheet, and (b) why this balance sheet is incorrect and what she should do to correctit.
Transcribed Image Text:
PHILCO COMPANY INC. Balance Sheet For the Month Ended December 31, 2014 Assets bili d Stockholders' Equipment Cash Supplies Accounts payable Total assets $18,000 9,000 1,000 (4,000) $24,000 Common stock Accounts receivable Dividends Notes payable Retained earnings Total liabilities and $12,000 (6,000) (2,000) 10,000 10,000 stockholders' equity $24,000
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To Lori Milner From Student I have received the balance sheet of Philco Company Inc as of December 3...View the full answer
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Ashok Kumar Malhotra
Chartered Accountant - Accounting and Management Accounting for 15 years.
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Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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