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    Balance sheets and Trial Balance Sheet Preparation

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    #1. Can you please show me how to do this...The night manager of Majestic Limousines 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
    Managers Report
    8:00PM Thursday

    Capitaol Stock $100,000
    Retained Earnings $62,000
    Cash $69,000
    Building $80,000
    Automobiles $165,000

    Owner's Equity
    Accounts Receivable $78,000
    Notes Payable $288,000
    Supplies $14,000
    Land $70,000
    Accounts Payable $26,000

    Please help me prepare a corrected balance sheet and include proper headers.

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    Solution Preview

    The balance sheet must be broken into two parts:
    <br>1) Assets
    <br>This part contains:
    <br>- current assets: cash, accounts receivable, inventory, and
    <br>- fixed or long-term ...