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0 AnswerSavedHelp opens in a new windowSave & ExitSubmit Item 3 9 points eBookItem 3 Eyelash Extension Company s liabilities as reported on the June
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Eyelash Extension Companys liabilities as reported on the June balance sheet are shown below, along with its statement of changes in equity.
Accounts payable $
Notes payable, due
Total liabilities $
Eyelash Extension Company
Statement of Changes in Equity
For Year Ended June
Jan Suzette, capital, June $
Add: Profit
Total $
Less: Withdrawals
Jan Suzette, capital, June $
Jan is selling the business. A potential buyer has hired an accountant to review the accounting records and the following was discovered:
Eyelash Extension Company began selling a new product line this past year that offered a warranty to customers. It is expected that $ of warranty work will result next year based on firstyear sales. No entry was prepared on June to show this.
Annual property taxes of $ are due July ; the income statement shows only one month of property expense resulting from an entry correctly recorded on July
Interest on the notes payable is paid quarterly. No entry has been recorded since the last quarterly payment of $ on May
$ of new office furniture was purchased on account and received on June This transaction has not been recorded.
Unearned revenue of $ has been included on the income statement.
Required:
Using the information provided, prepare a corrected statement of changes in equity and liabilities section of the balance sheet. Ignore PSTGSTRound your intermediate calculations and final answers to the nearest whole dollar.
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