Correct an incorrectly prepared balance sheet. (LO 3) E1-10B John Paul is the bo
ID: 2330151 • Letter: C
Question
Correct an incorrectly prepared balance sheet.
(LO 3)
E1-10BJohn Paul is the bookkeeper for Eaton Company. John has been trying to get the balance sheet of Eaton Company to balance. It finally balanced, but now he’s not sure it is correct.
EATON COMPANY
Balance Sheet
December 31, 2014
Assets
Liabilities and Stockholders’ Equity
Cash
$28,500
Accounts payable
$ 6,000
Supplies
4,500
Accounts receivable
(15,000)
Equipment
30,000
Common stock
42,000
Dividends
10,000
Retained earnings
40,000
Total assets
$73,000
Total liabilities and
stockholders’ equity
$73,000
Instructions
Prepare a correct balance sheet.
Correct an incorrectly prepared balance sheet.
(LO 3)
Explanation / Answer
EATON COMPANY
Balance Sheet as on December 31, 2014
Notes
Particulers Note no. Amount I Equity And Liabilities 1)Share Holder's Funds a) Sahre Capital 1 42,000 b) Reserve and Surplus 2 40,000 Total Sahre Holder's Funds 82000 2)Non Current Liabilites - 3)Current Liabilities a)Trade Payable 3 6,000 Total Current Liabilities 6,000 Total Equity & Liabilities 88,0000 II Assets 1) Non Current Asset a)Fixed -Tangible Assets 4 30,000 2)Current Assets a)Inventories 5 4,500 b)Trade Receivable 6 15,000 c)Case & bank balance 28,500 d) Short term Loans and Advance 7 10,000 Total current Assets 58,000 Total assets 88,000