Exercise 2.2 Preparing a Balance Sheet (LO2-4)

The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. The dollar amounts were taken directly from the companys accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owners equity.

WILLIS TRANSPORTATION SERVICE Managers Report 8 P.M. Thursday
Assets			Owners' Equity
Capital stock	$	94,000	Accounts receivable	$	72,000
Retained earnings		62,000	Notes payable		281,000
Cash		74,000	Supplies		14,000
Building		90,000	Land		70,000
Automobiles		175,000	Accounts payable		58,000
	$	495,000		$	495,000

Prepare a corrected balance sheet.