Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Company was formed on January 1, 2022. At December 31, 2022, Mikou, the president and sole stockholder, decided to prepare a balance sheet, which

image text in transcribed
image text in transcribed
Crane Company was formed on January 1, 2022. At December 31, 2022, Mikou, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows Accounts receivable December 31, 2022 Liabilities and stockholders' Equity $20.500 Accounts payable $32,700 61.000 Notes payable 15,800 36,000 atlon 27,000 25,000 Stackholders' uity 67,000 Inventory Miko willingly admits that she is not an accountant by training. She is concerned that her balance sheet might not be correct. She has provided you with the following additional information 1. 2. 3. The boat actually belongs to Miko, not to Crane Company. However, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. To be consistent, the le listed a b ility of the corporation her personal loan that she took out at the bank to buy the boat The inventory was originally purchased for $25,900, but due to a surge in demand Mike now thinks she could sell for $35.000. She thought it would be best to record it at $36,000 Included in the accounts receivable balance is $10,700 that Mike loaned to her brother 5 years ago Mike included this in the recevables of Crane Companys she wouldn't forget that her brother owes her money (b) Provide a corrected balance sheet for Crane Company (Hot To get the balance sheet to balance, adjust stockholders' equity) (List assets in order of liquidity) Provide a corrected balance sheet for Crane Company Hint: to get the balance sheet to balance, adjust stockholders' equity List assets in order of liquidity) CRANE COMPANY Balance Sheet December 31, 2022 Cash account Inventory Total Assets Liabilities and Stockholders' Equity Liabilities Accounts Payable Notes Payable Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity SHOW UST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Question Attempts: 0 of 4 used SAVETO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Intelligence For Entrepreneurs What You Really Need To Know About The Numbers

Authors: Karen Berman, Joe Knight

1st Edition

1422119157, 9781422119150

More Books

Students also viewed these Accounting questions