MBL914N OCTOBER NOVEMBER 2014 PART A: FINANCIAL ACCOUNTING [50 MARKS] QUESTION 1 (20 MARKS] The manager of Headlines Lid prepared the company's balance sheet while the accountant was if The balance sheet contains numerous errors in particular the manager knew the balance sheet should balance, so he plugged in the shareholders' equity amount needed to achieve this balance The shareholders' equity amount is not correct All other amounts are accurate enter 13 000 1 800 Assets Cash Equipment Accounts payable Utilities expense Advertising expense 1 000 Headlines Ltd .Balance sheet for the month ended June 30 2014 Liabilities 8 000 Notes receivable 39 500 Interest expense 5 000 Office supplies 1 700 Accounts receivable 500 Note payable 77 000 Total liabilities 4 000 Shareholders' equity Shareholders' equity 135 700 Total equity and liabilities 2 600 55 500 73 900 Land Salary expense 61 800 135 700 SE Total assets Required: a) Prepare the correct balance sheet and date it properly Calculate total assets, total liabilities and shareholders' equity (15) b) 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 prepared for requirement 1 On which financial statement should these accounts appear? (5) [TURN OVER]