The following list of balance sheet items are in random order for Wilson Farms, Inc., at September 30, 2011: Instructions
The following list of balance sheet items are in random order for Wilson Farms, Inc., at September 30, 2011:
a. Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar to that illustrated in Exhibit 2â€“10. (After â€œBarns and Sheds,â€ you may list the remaining assets in any order.) Include a proper heading for your balance sheet.
b. Assume that on September 30, immediately after this balance sheet was prepared, a tornado completely destroyed one of the barns. This barn had a cost of $13,700 and was not insured against this type of disaster. Explain what changes would be required in your September 30 balance sheet to reflect the loss of thisbarn.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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