Ceramics, Inc. reported the following balance sheet for the year 2001.
For the Year Ending December 31, 2001
Accounts Payable 500
Total Assets $6000
Accounts Receivable $3000
Accrued Liabilities 1000
Total Liabilities 4000
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.
Corrected balance sheet is presented below.
Balance Sheet for the year ending December 31, 2001
Assets Cash 2000
The solution explains the errors and presents a corrected balance sheet in good form.