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Majestic Limousine Service: Fix the errors in the balance sheet

The night manager of Majestic Limousine Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2002. The dollar amounts were taken directly from the company's 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.

MAJESTIC LIMO
Manager's Report
8 P.M. Thursday

Assets Owners' Equity
Capital Stock . . . . . . . . . . . . . $100,000 Accounts Receivable . . . . . . . . $ 78,000
Retained Earnings . . . . . . . . . 62,000 Notes Payable . . . . . . . . . . . . . 288,000
Cash . . . . . . . . . . . . . . . . . . . 69,000 Supplies . . . . . . . . . . . . . . . . . 14,000
Building . . . . . . . . . . . . . . . . . 80,000 Land . . . . . . . . . . . . . . . . . . . 70,000
Automobiles . . . . . . . . . . . . . . 165,000 Accounts Payable . . . . . . . . . . 26,000
$476,000 476,000
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Solution:

Land . . . . . . . . . . . . . . . . . . . 70,000 Notes Payable . . . . . . . . . . . 288,000
Accounts Receivable . . . . . $ 78,000 Accounts ...

Solution Summary

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$2.19