You and your friend Shirley from ACC100 have been studying for the final exam. Shirley is...

  

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You and your friend Shirley from ACC100 have been studying for the final exam. Shirley is very uncertain about the structure of the balance sheet and shows you a practice balance sheet, provided below. Shirley could not get the balance sheet to balance. You are told that the retained earnings amount was changed to make the assets equal the liabilities plus equity BUT you both know the retained earnings number is WRONG! You see right away that there are several errors on the statement. Because you are good friends, you decide to produce a balance sheet in good form using the correct format AND with the correct retained earnings amount. REQUIRED: Create a correct balance sheet and answer the questions below. ENTRY RULES: Enter digits (whole numbers) only - no commas, dollar signs, decimal points or pennies. ASSETS Wonderful Computer Systems Balance Sheet Year Ended December 31, 2021 Cash Office supplies Prepaid insurance Inventory Accounts receivable Prepaid rent Deferred revenue Equipment TOTAL ASSETS LIABILITIES AND EQUITY Interest payable Salaries payable Accumulated depreciation Note payable (due in 2025) Accounts payable 11,250 1,575 1,800 4,550 10,875 1,200 3,500 87,500 2,500 5,750 27,500 25,000 1,775 122,250 Income tax payable Dividends Retained earnings (INCORRECT!) Profit Owners' capital TOTAL LIABILITIES AND EQUITY 3,500 (6,000) 15,225 12,000 35,000 122,250 What is the correct heading for this statement? (1 mark) A. Wonderful Computer Systems; Year Ended December 31, 2021; Balance Sheet B. Balance Sheet; December 31, 2021; Wonderful Computer Systems C. Balance Sheet; Wonderful Computer Systems; Year Ended December 31, 2021 D. Wonderful Computer Systems; Balance Sheet; December 31, 2021 E. December 31, 2021; Balance Sheet; Wonderful Computer Systems F. The current heading is correct. You and your friend Shirley from ACC100 have been studying for the final exam. Shirley is very uncertain about the structure of the balance sheet and shows you a practice balance sheet, provided below. Shirley could not get the balance sheet to balance. You are told that the retained earnings amount was changed to make the assets equal the liabilities plus equity BUT you both know the retained earnings number is WRONG! You see right away that there are several errors on the statement. Because you are good friends, you decide to produce a balance sheet in good form using the correct format AND with the correct retained earnings amount. REQUIRED: Create a correct balance sheet and answer the questions below. ENTRY RULES: Enter digits (whole numbers) only - no commas, dollar signs, decimal points or pennies. ASSETS Wonderful Computer Systems Balance Sheet Year Ended December 31, 2021 Cash Office supplies Prepaid insurance Inventory Accounts receivable Prepaid rent Deferred revenue Equipment TOTAL ASSETS LIABILITIES AND EQUITY Interest payable Salaries payable Accumulated depreciation Note payable (due in 2025) Accounts payable 11,250 1,575 1,800 4,550 10,875 1,200 3,500 87,500 2,500 5,750 27,500 25,000 1,775 122,250 Income tax payable Dividends Retained earnings (INCORRECT!) Profit Owners' capital TOTAL LIABILITIES AND EQUITY 3,500 (6,000) 15,225 12,000 35,000 122,250 What is the correct heading for this statement? (1 mark) A. Wonderful Computer Systems; Year Ended December 31, 2021; Balance Sheet B. Balance Sheet; December 31, 2021; Wonderful Computer Systems C. Balance Sheet; Wonderful Computer Systems; Year Ended December 31, 2021 D. Wonderful Computer Systems; Balance Sheet; December 31, 2021 E. December 31, 2021; Balance Sheet; Wonderful Computer Systems F. The current heading is correct.

Answer rating: 100% (QA)

ANSWER correct amount of long term liabilities notes payable due in 2025 2... View the full answer