Sandi Alcon, the bookkeeper for New York Company, has been trying to determine the correct balance sheet for the company. The company?s balance sheet is shown below.

InstructionsExplain to Sandi Alcon in a memo why the original balance sheet is incorrect, and what should be done to correct it.

Transcribed Image Text:

New York Company Balance Sheet For the Month Ended December 31, 2022 Assets Liabilities Owner's capital Equipment $25,500 $26,000 9,000 Cash Accounts receivable (6,000) Owner's drawings Notes payable Supplies Accounts payable 2,000 (2,000) (8,000) 10,500 $28,500 $28,500