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Correcting Balance Sheet

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

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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