Pete is the president of Island Enterprises. Island Enterprises began business on January 1, 2010. The company's controller is out of the country on business. Pete needs a copy of the company's balance sheet for a meeting tomorrow and asks his assistant to obtain the required information from the company's records. She presents Pete with the following balance sheet. He asks you to review it for accuracy.

Required
1. Prepare a corrected balance sheet.
2. Draft a memo explaining the major differences between the balance sheet Pete's assistant prepared and the one youprepared.

Transcribed Image Text:

Island Enterprises Balance Sheet For the Year Ended December 31, 2010 Assets Liabilities and Stockholders' Equity Accounts payable Building and equipment Cash Cash dividends paid $ 29,600 177,300 14,750 16,000 Accounts receivable Supplies Capital stock Net income for 2010 $ 23,200 12,200 100,000 113,850