Mixed Up Balance Sheet Kim's Tea and Pastry Shop Balance Sheet As of 12/31/19 (in millions) Assets Liabilities $15,000 $30,000 Cash (includes amounts in bank accounts, and investments in stock of other companies) $97,500 Accounts Payable (includes amounts owed to suppliers for inventory bought on credit and amounts owed on purchases of machinery and equipment) Accrued Liabilities (includes amounts owed for wages, rent, and utilities) Short-term Note Payable (due in two years) Inventory (marked up to reflect appreciation in market value) Accounts Receivable (including unearned revenue of $1,500) $97,500 $45,000 $7,500 Total Current Assets $157,500 Total Current Liabilities $135,000 $300,000 Long term debt $150,000 Property, Plant, and Equipment (reported at Historical Cost, net of Accumulated Depreciation) Intangibles (includes $40,500 in goodwill, $225 due to patent legal fees, and $750 in brand recognition) $41,475 Total Noncurrent Liabilities $150,000 Total Liabilities $285,000 $29,850 Total Noncurrent Assets $341,475 $150 Common stock (Excess of cash shareholders paid over the par value of shares) Additional Paid-in-Capital (1,500 shares at $0.10 par value per share) Retained Earnings Total Owners' Equity $183,975 $213,975 Total Assets $498,975 $498,975 Total Liabilities and Owners' Equity . , Mixed-up Balance Sheet: List the errors in the Balance Sheet below-say (1) what the error is and (2) what a correct balance sheet would show instead. Your answers do NOT have to be in the same order in which the errors appear in the balance sheet Additional Guidance: : There are exactly 8 errors. Also, please note that there are 8 distinct errors, meaning that one error that implies two accounts are incorrect would only count as one error. . There are no mathematical errors. Saying "the Balance Sheet does not balance" is not an allowable answer. All errors should be related to something visible from looking at the Balance Sheet (ie, "Operating leases are missing is not an error). Mixed. Lip Balance Sheet Kim's Tea and Pastry Shop Balance Sheet As of 12/31/19 (in millions) Liabilities $15.000 S30000 Cash includes amounts in bank accounts, and investments in stock of other companies lavory (marked up to reflect appreciation in market value) Accounts Receivable including wearned revenue of S1,500) Accounts Payable includes amounts owed to suppliers for invenky bought on credit and amounts owed on purchases of machinery and equipment) Accrued Liabilities includes amounts owed for wages, rel. and utilities) Short-term No Payable (do in two years) 597 300 597.500 $45.000 $ $7,500 Total Current Assets $157,500 $135.000 Total Current Limbilities Longe debe $300.000 S150,000 Property, Plant, and Equipment reported at Historical Cost, net of Accumulated Depreciation) Intangibles includes $40,500 in goodwill S225 due to patent legal fees, and $750 in brand cognition 541,475 Total Noncurrent liabilities $150.000 Total Liabilities $285.000 Total Noncurrent Assets 5341,495 Common stock (Excess of each $29.850 shareholders paid over the par value of shares) Additional Paid-in-Capital SI SO (1,500 shares at 50.10 par value per sharel Retained Earnings SIR3 975 Total Owners' Equity $213.975 Total Liabilities and Ouers S498.975 Equity Total As 5498.975
