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    Correcting Balance Sheet

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    I have been asked to correct the balance sheet; however, I do not understand what I am to do. Please assist.

    Correct the following balance sheet.
    Balance Sheet
    December 31, 2006
    Assets Liabilities and Owners' Equity
    Cash .............$ 55,000 Buildings . . . . . . .. .$325,000
    Accounts payable ... 65,000 Accounts receivable . . . 75,000
    Interest receivable. 20,000 Mortgage payable .. . . . 150,000
    Capital stock . . . 200,000 Sales revenue . . . . . . 350,000
    Rent expense . . . . 60,000 Equipment . . . . . . . . .85,000
    Retained earnings . 145,000 Utilities expense . . . . . 5,000
    Total liabilities and
    Total assets . . . $545,000 Total liabilities and owner's
    equity................. $990,000

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    https://brainmass.com/economics/income-distribution/correcting-balance-sheet-160936

    Solution Preview

    In order to correct the balance sheet we need to put the items in the proper place. All assets under assets and liabilities and equity under liabilities and equity so that the balance sheet balances. At ...

    Solution Summary

    The solution explains how to prepare a corrected balance sheet

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