The following Classified Balance Sheet has numerous errors. Indicate the errors
ID: 2446711 • Letter: T
Question
The following Classified Balance Sheet has numerous errors. Indicate the errors in this Balance Sheet by preparing a corrected Classified Balance Sheet with all required information.
Land has an original cost of $3,000 and inventory cost the company $5,000.
Thompson Company, lnc Trial Balance For the year ended Dec. 31, 2012 Assets, Liabilities and Net Worth $18,000 $4,500 $5,000 $2,100 $12,000 $3,500 $27,100 $11,000 $38,100 Accumulated Depreciation Building, at cost Land, appraised value Inventory, retail price $9,000Note Payable (due 2015) $10,000 Wages payable Capital Stock Retained Earnings Accounts receivable Accounts payable Cash Total Assets $2,500 (3,600) Total Liabilities $2,200 Amount needed to balance Total Liab. & Net worth $38,100Explanation / Answer
Balance Sheet Liabilities Amount Assets Amount Note Payable 5,000.00 Building 18,000 Wages Payable 2,100.00 Acc Depr 4,500 13,500.00 Account Payable 3,600.00 Land 3,000.00 Capital Stock 12,000.00 Inventory 5,000.00 Retained Earnings 3,500.00 Accounts Receivable 2,500.00 Cash 2,200.00 26,200.00 26,200.00