The manager of News Maker, Inc., prepared the companys balance sheet while the accountant was ill. The

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The manager of News Maker, Inc., prepared the company€™s balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the manager knew that the balance sheet should balance, so he plugged in the stockholders equity amount needed to achieve this balance. The stockholders equity amount is not correct. All other amounts are accurate.

The manager of News Maker, Inc., prepared the company€™s balance

Requirements
1. Prepare the correct balance sheet and date it properly. Compute total assets, total liabilities, and stockholders equity.
2. Is News Maker in better (or worse) financial position than the erroneous balance sheet reports? Give the reason for your answer.
3. Identify the accounts that should not be reported on the balance sheet. State why you excluded them from the correct balance sheet you prepared for Requirement 1. On which financial statement should these accountsappear?

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Related Book For  book-img-for-question

Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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