Mary Close is the bookkeeper for Mendez Company. Mary has been trying to get the
balance sheet of Mendez Company to balance. Below is a balance sheet but it is not correct and needs to be fixed.
harmony harris: MENDEZ COMPANY
December 31, 2008
Cash $15,000 Accounts payable $20,000
Supplies 8,000 Accounts receivable (8,500)
Equipment 46,000 Common stock 50,000
Dividends 10,000 Retained earnings 17,500
Total assets $79,000 Total liabilities and
stockholders' equity $79,000
This solution describes how to set up and balance a balance sheet.