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    Correcting errors in balance sheet

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    The following classified Balance Sheet has numerous errors. Indicate in this Balance Sheet by describing in words the deficiencies. See attached file #1

    27) The following classified Balance Sheet has numerous errors. Indicate in this Balance Sheet by describing in words the deficiencies.

    Tigeress Company, Inc.
    Tire Balance
    For the year ended Dec. 31, 2001

    Assets, Liabilities and Net Worth
    Building, at cost $8700 Accumulated Depreciation $2300
    Land, appraised value $5000 Note Payable (due 2005) $4000
    Inventory, retail price $6000 Common Stock $10000
    Accounts Receivable $3500 Retained Earnings $ 500
    Accounts payable ($1600) Total Liabilities $16800
    Cash $1200 Amount to balance $6000
    Total Assets $22800 Total Liab. & Net Worth $22800

    Additional information:
    Land has an original cost of $2000 and inventory cost the company $3000.

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    https://brainmass.com/business/balance-sheet/correcting-errors-balance-sheet-5711

    Attachments

    Solution Preview

    See attached file for answers.

    The recast Balance Sheet is :

    Tigeress Company, Inc.
    For the year ended Dec. 31, 2001

    Assets, Liabilities and Net Worth
    Plant Assets
    Building, at cost $8700 Accounts payable $1600
    Less Accumulated Depreciation ($2300) Note Payable (due 2005) $4000
    Net book value of building $6400 Common Stock $10000
    Land, appraised value $5000 Retained ...

    Solution Summary

    The solution corrects a balance sheet's errors.

    $2.19

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