Purchase Solution

Financial Accounting: Ceramics Inc; corrections to balance sheet

Not what you're looking for?

Ask Custom Question

Ceramics, Inc. reported the following balance sheet for the year 2001.

Balance Sheet
For the Year Ending December 31, 2001

Cash $2000
Accounts Payable 500
Inventory 900
Equipment 1000
Land 1500
Total Assets $6000

Accounts Receivable $3000
Accrued Liabilities 1000
Total Liabilities 4000

Stockholders' Equity
Common Stock 1800
Retained Earnings 5100
Total Stockholders' Equity 6900

Total Liabilities and Stockholders' Equity $10900

A) Identify and list the errors in the balance Sheet Above.
B) Prepare a corrected balance sheet.

Purchase this Solution

Solution Summary

The solution explains the errors and presents a corrected balance sheet in good form.

Solution Preview

Corrected balance sheet is presented below.

Balance Sheet for the year ending December 31, 2001

Assets Cash 2000
Inventory 900
Accounts ...

Purchase this Solution

Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.