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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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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
Similar Posting

ABC Corporation - Balance Sheet

ABC Corporation
Balance Sheet
For the year ended December 31, 2007

Assets

Current Assets:
Cash................................................ $ 18,000
Trading securities (fair value, $32,000)........... 27,000
Accounts receivable.................................75,000
Merchandise inventory............................. 60,000
Supplies inventory................................... 3,000
Stock investment in subsidiary company......... 60,000............ $243,000
Investments:
Treasury stock............................................................... 78,000
Tangible Fixed Assets:
Buildings and land................................... 213,000
Less: Reserve for depreciation..................... 60,000.............. 153,000
Deferred Charges:
Unamortized discount on bonds payable................................... 3,000
Other Assets:
Cash surrender value of life insurance.................................... 54,000
......................................................................................... $531,000

Liabilities and Capital

Current Liabilities:
Accounts payable.................................. $45,000
Reserve for income taxes.......................... 42,000
Customer's accounts with credit balances.......... 3..................... $87,003

Long-Term Liabilities:
Bonds payable................................................................. 120,000
Total Liabilities........................................................ 207,003

Capital Stock:
Capital stock.......................................... 225,000
Earned surplus.......................................... 74,997
Cash dividends declared.............................. 24,000................ 323,997
............................................................................................. $531,000

List the corrections needed to present in good form the balance sheet below. Errors include misclassifications, lack of adequate disclosure, and poor terminology. Do not concern yourself with the arithmetic. If an item can be classified in more than one category, select the category most favored by the authors of your textbook.

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