Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s balance sheet to balance. She fi nally got it to balance, but she still isn’t sure that it is correct. (LO 3)

SAMCO COMPANY, INC.

Balance Sheet For the Month Ended December 31, 2017 Assets Liabilities and Stockholders’ Equity Equipment $18,000 Common stock $12,000 Cash 9,000 Accounts receivable (6,000)

Supplies 1,000 Dividends (2,000)

Accounts payable (4,000) Notes payable 10,000 Total assets $24,000 Retained earnings 10,000 Total liabilities and stockholders’ equity $24,000 Instructions Explain to Marci Ling in a memo

(a) the purpose of a balance sheet, and

(b) why this balance sheet is incorrect and what she should do to correct it.