Question 26 options:

In this section, all questions are worth 2 marks unless indicated otherwise. There are 17 marks in total.

You and your friend Shanelle from ACC100 have been studying for the final exam.

Shanelle is very uncertain about the structure of the balance sheet and shows you a practice balance sheet, provided below.

Shanelle 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 a balance sheet in good form using the correct format AND with the correct retained earnings amount.

REQUIRED:

Create a correct balance sheet and answer the questions below.

ENTRY RULES:

Enter digits (whole numbers) only - no commas, dollar signs, decimal points or pennies.

Marvelous Computer Systems
Balance Sheet
Year Ended December 31, 2021
ASSETS
	Cash	18,650
	Office supplies	2,145
	Prepaid insurance	1,500
	Inventory	5,575
	Accounts receivable	1,500
	Prepaid rent	1,650
	Deferred revenue	2,165
	Equipment	95,300
TOTAL ASSETS			128,485
LIABILITIES AND EQUITY
	Interest payable	2,400
	Salaries payable	11,640
	Accumulated depreciation	22,500
	Note payable (due in 2023)	27,000
	Accounts payable	2,385
	Income tax payable	2,100
	Dividends	(7,500)
	Retained earnings (INCORRECT!)	20,310
	Profit	15,650
	Owners' capital	32,000
TOTAL LIABILITIES AND EQUITY			128,485

What is the correct amount of long-term liabilities?