Question
In this section, all questions are worth 2 marks unless indicated otherwise. You and your friend Shayne from ACC100 have been studying for the final
In this section, all questions are worth 2 marks unless indicated otherwise.
You and your friend Shayne from ACC100 have been studying for the final exam. Shayne is very uncertain about the structure of the balance sheet and shows you a practice balance sheet, provided below. Shayne could not get the balance sheet to balance. You are told that the retained earnings amount was changed to make the assets equal the liabilities plus equity BUT you both know the retained earnings number is WRONG! You see right away that there are several errors on the statement. Because you are good friends, you decide to produce for Shayne a balance sheet in good form using the correct format AND with the correct retained earnings amount.
REQUIRED - Answer the questions below with the numbers that would appear on a CORRECT balance sheet.
Terrific Computer Systems Ltd. | |||
Balance Sheet | |||
Year ending December 31, 2021 | |||
ASSETS | |||
Cash | 6,520 | ||
Office supplies | 1,045 | ||
Prepaid insurance | 800 | ||
Inventory | 2,750 | ||
Accounts receivable | 3,525 | ||
Prepaid rent | 650 | ||
Deferred revenue | 1,280 | ||
Equipment | 65,350 | ||
TOTAL ASSETS | 81,920 | ||
LIABILITIES AND EQUITY | |||
Interest payable | 1,250 | ||
Salaries payable | 2,500 | ||
Accumulated depreciation | 12,570 | ||
Note payable (due in 2022) | 18,000 | ||
Accounts payable | 1,455 | ||
Income tax payable | 950 | ||
Dividends | (3,000) | ||
Retained earnings (INCORRECT!) | 28,655 | ||
Profit | 7,540 | ||
Owners capital | 12,000 | ||
TOTAL LIABILITIES AND EQUITY | 81,920 | ||
Question 1 (2 points)
Question 1 options:
What is the correct amount of total assets?
Question 2 (1 point)
What is the correct heading for this statement? (1 mark)
Question 2 options:
| The heading above is correct. |
| December 31, 2021, Balance Sheet, Terrific Computer Systems Ltd. |
| Balance Sheet, Terrific Computer Systems Ltd., Year ended December 31, 2021 |
| Terrific Computer Systems Ltd., Year ended December 31, 2021, Balance Sheet |
| Terrific Computer Systems Ltd., Balance Sheet, December 31, 2021 |
| Balance Sheet, December 31, 2021, Terrific Computer Systems Ltd. |
Question 3 (2 points)
Question 3 options:
What is the correct amount of current assets?
Question 4 (2 points)
Question 4 options:
What is the correct amount of total liabilities?
Question 5 (2 points)
Question 5 options:
What is the correct amount of current liabilities?
Question 6 (2 points)
Question 6 options:
What is the correct amount of retained earnings?
Question 7 (2 points)
Question 7 options:
What is the correct amount of total equity?
Question 8 (2 points)
Question 8 options:
What is the correct amount of long-lived assets?
Question 9 (2 points)
Question 9 options:
What is the correct amount of long-term liabilities?
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