You and your friend Shirley from ACC100 have been studying for the final exam. Shirley is very uncertain about the structure of the balance sheet and shows you a practice balance sheet, provided below. Shirley 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.

Wonderful Computer Systems
Balance Sheet
Year Ended December 31, 2021
ASSETS
	Cash	11,250
	Office supplies	1,575
	Prepaid insurance	1,800
	Inventory	4,550
	Accounts receivable	10,875
	Prepaid rent	1,200
	Deferred revenue	3,500
	Equipment	87,500
TOTAL ASSETS			122,250
LIABILITIES AND EQUITY
	Interest payable	2,500
	Salaries payable	5,750
	Accumulated depreciation	27,500
	Note payable (due in 2025)	25,000
	Accounts payable	1,775
	Income tax payable	3,500
	Dividends	(6,000)
	Retained earnings (INCORRECT!)	15,225
	Profit	12,000
	Owners' capital	35,000
TOTAL LIABILITIES AND EQUITY			122,250

1. What is the correct heading for this statement? (1 mark)

A. Wonderful Computer Systems; Year Ended December 31, 2021; Balance Sheet

B. Balance Sheet; December 31, 2021; Wonderful Computer Systems

C. Balance Sheet; Wonderful Computer Systems; Year Ended December 31, 2021

D. Wonderful Computer Systems; Balance Sheet; December 31, 2021

E. December 31, 2021; Balance Sheet; Wonderful Computer Systems

F. The current heading is correct.

Enter the letter corresponding to your choice (A B C D E F)

2. What is the correct amount of current assets?

3. What is the correct amount of long-lived assets?

4. What is the correct amount of total assets?

5. What is the correct amount of current liabilities?

6. What is the correct amount of long-term liabilities?

7. What is the correct amount of total liabilities?

8. What is the correct amount of equity?

9. What is the correct amount of retained earnings?