Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The CEO of XYZ, Inc., prepared the firm's balance sheet as of December 31,2019, while the accountant was on vacation. However, the balance sheet contains

image text in transcribed
image text in transcribed
The CEO of XYZ, Inc., prepared the firm's balance sheet as of December 31,2019, while the accountant was on vacation. However, the balance sheet contains many mistakes. The owner' equity amount is not correct. All other amounts are accurate. Assets Cash Salary Expense Equipment Accounts Payable Utilities Expenses Advertising Expense Land XYZ, Inc. Balance Sheet December 31, 2019 Liabilities 11,000 Notes Receivable 15,200 2,500 Interest Expenses 2,400 35,650 Office Supplies 800 4,000 Account Receivable 2,600 1,600 Notes Payable 55,550 1,000 Total 76,550 84,000 Owner's Equity Owner's Equity 63,200 139.750 Total Equity and Total 139.750 Liabilities Total Assets Requirements: a) Write the correct balance sheet with the proper headings. Calculate total assets, total liabilities, and owners equity. (Rubrics: 0.25 mark for each correct element, 0.5 mark for the correct calculations of equity. Total = 3.5 marks) b) a. Identify the accounts that are not supposed to be on the balance sheet. b. Explain why these accounts should be excluded from the balance sheet and on which financial statement should these accounts appear? PART D: The Accounting Cycle INSTRUCTION: Read the questions carefully and use the information provided in each question to answer that question. Show all your calculation and workings. LATION Selected transactions from the general journal of ABC, Inc. for its first month of operations are presented below. Debit Credit 3,000 + 3,000 1,800 1,800 4,000 Date Accounts and explanations May May. 1 Cash Common Stock 7 Cash Service Revenues 11 Equipment Cash Notes Payable 14 Cash Account Receivables Service Revenues 16 Cash Sales Revenues 28 Cash Account Receivables 30 Salary Expenses Cash 31 Dividends Cash 1,500 2,500 450 1,000 1,450 900 900 700 700 2,000 2,000 500 500 Retirements: a) Using T accounts, post the journal entries to the general ledger (Rubrics: 0.5 mark for each correct Todccount, 0.25 mark for each correct entry in a single T- Account Total marks = 8 ) b) Prepare a trial balance on May 31, 2019 (Rubrics: 0.5 mark for each correct entry of the trial balance including the corner headong and the totals. Total 5.5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Robin P. Clement, Suzanne H. Lowensohn, Joseph H. Anthony

9th Edition

0131851225, 978-0131851221

More Books

Students also viewed these Accounting questions

Question

1 When and how is group coaching beneficial?

Answered: 1 week ago