Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Top Runner, Inc. Balance Sheet Assets Cash $ $ December 31, 2018 Liabilities 8,000 Notes receivable 39,500 Interest expense 3,000 Office supplies 2,300 Accounts receivable

image text in transcribed
image text in transcribed
image text in transcribed
Top Runner, Inc. Balance Sheet Assets Cash $ $ December 31, 2018 Liabilities 8,000 Notes receivable 39,500 Interest expense 3,000 Office supplies 2,300 Accounts receivable 15,200 1,700 Equipment Accounts payable Utilities expense 1,200 3,400 52,000 Advertising expense Land 500 Note payable 78,000 Total 5,000 Stockholders' Equity 73,500 Salary expense 62,800 Stockholders' equity $ 136,300 $ 136,300 Total assets Total liabilities The manager of Top Runner, Inc., prepared the company's balance sheet as of December 31, 2018, while the company's accountant was ill. The balance sheet contains numerous errors. In particular, the manager knew that the balance sheet should balance, so she plugged in the stockholders' equity amount needed to achieve this balance. The stockholders' equity amount is not correct. All other amounts are accurate, Click the icon to view the manager's balance sheet.) Read the requirements Requirement 1. Prepare the correct balance sheet and date it properly. Compute total assets, total liabilities, and stockholders' equity. (Do not classify the balance sheet into current and long-term sections. In the first part complete the assets section of the balance sheet. In the second part complete the linbilities and stockholders' equity section of the balance sheet. If a box is not used in the balance sheet, leave the box empty, do not select a label or entor a zero.) Assets Liabilities Total liabilities Stockholders' Equity Total assets Total liabilities and stockholders' equity Stockholders' Equity Total assets Total liabilities and stockholders' equity Requirement 2. Is Top Runner actually in botter (or worse) financial position than tho orroneous balance sheet reports? Give the reason for your answer. Top Runner financial position because stockholders' equity has by by s is in and liabilities have Requirement 3. 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? The accounts that are not on the balance sheet are: The accounts that are left off of the balance sheet are excluded because they are These accounts are listed on the

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

Business Analysis With Microsoft Excel

Authors: Conrad Carlberg

3rd Edition

0789736640, 9780789736642

More Books

Students also viewed these Accounting questions

Question

5. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

2. Answer the question, Who should do the appraising?

Answered: 1 week ago