Financial Accounting: Ceramics Inc; corrections to balance sheet
Ceramics, Inc. reported the following balance sheet for the year 2001.
Balance Sheet
For the Year Ending December 31, 2001
Assets:
Cash $2000
Accounts Payable 500
Inventory 900
Equipment 1000
Land 1500
Total Assets $6000
Liabilities:
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.
https://brainmass.com/business/balance-sheet/financial-accounting-ceramics-corrections-balance-sheet-5761
Solution Preview
Corrected balance sheet is presented below.
Balance Sheet for the year ending December 31, 2001
Assets Cash 2000
Inventory 900
Accounts ...
Solution Summary
The solution explains the errors and presents a corrected balance sheet in good form.