find retained earnings

Requirements 1. Prepare the correct Balance Sheet and date it properly. Compute total assets, total liabilities, and shareholders' equity. 2. Is Headlines actually in a better (or worse) financial position than the erroneous Balance Sheet reports? Give reasons for your answer. 3. Identify the accounts listed on the incorrect Balance Sheet that should not be reported on the Balance Sheet. State why you excluded them from the correct Balance Sheet you prepafed for Requirement 1 . On which financial statement should these accounts appear? P1-58A. (Learning Objectives 2, 4: Preparing a Balance Sheet; applying the entity assumption; making business decisions) Sandy Healey is a realtor. She organized the business a. a corporation on April 16,20X7. The business received $85,000 cash from Healey and issued shares to Healey. Consider the following facts as of April 30,207. a. Healey has $15,000 in her personal bank account and $70,000 in the business bank account. b. Healey owes $2,000 on a personal charge account with a department store. c. Healey acquired business furniture for $38,000 on April 25. Of this amount, the business owes $32,000 on accounts payable at April 30 . d. Office supplies on hand at the real estate office total $13,000. e. Healey's business owes $36,000 on a note payable for some land acquired for a total price of $112,000. f. Healey's business spent $22,000 for a Realty Universe franchise, which entitles her to represent herself as an agent. Realty Universe is a national affiliation of independent real estate agents. This franchise is a business asset. g. Healey owes $142,000 in mortgage on her personal residence, which she acquired in 201 for a total price of $360,000. Highest percentage of net income to revenues? P1-57A. (Learning Objectives 3, 4: Vising the accounting equation; preparing a Balance Sheet; making decisions) The manager of Headlines, Inc., prepared the company's Balance Sheet while the accourtant was ill. The Balance Sbeet contains numerous errocs. In particular, the manager knew that the Balance Sheet should balance, so he plugged in the shareholders' equity annount needed to achieve this balance. The shareholders" equily amount is not correct. All oher amkunts are accurate. Requirements 1. Prepare the correct Balance Sheet and date it properly. Compute total assets, total liabilities, and shareholders' equity. 2. Is Headlines actually in a better (or worse) financial position than the erroneous Balance Sheet reports? Give reasons for your answer. 3. Identify the accoubss listed on the incorrect Balance Sheet that should not be reported on the Balance Sheet. State why you excluded them from the correct Balance Sheet you prepared for Requirement 1. On which financial stanement should these accounts appear? P1-58.A. (Learning Objectives 2, 4: Preparing a Balance Shect; applying the entity assumprion: making bursiness decisions) Sandy Healey is a reallor. She organized the business as a corporation on April 16. 20X7. The business recenved $85,000 eash from Healey and issued shares to Healey. Consider the following facts as of April 30, 20X7. a. Healey has $15,000 in her perwonal bunk account and $700000 in the tusiness bank account. b. Healey owes $2,000 os a personal charge account with a department store. c. Healey acquired besiness furniture for $38,000 on April 25 . Of this amount, the business owes $32,000 on accounts payable at April 30 . d. Office supplies on hand at the real estate office total $13,000. e. Healey"s business owes $36,000 on a note payable for some land aequired for a total price of $112,000. f. Healey's business spent $22,000 for a Realty Universe franchise, which entitles her to represent herself as an agent. Realty Universe is a national affiliation of independent real estate agents. This franchise is a business asset. a. Healey owes $142,000 in mongage on ber personal residence, which she aequired in 201 for a total price of $360,000