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Your best firlend from home writes you a letter about an Investment opportunity that has come her way. A company is raising money by Issuing
Your best firlend from home writes you a letter about an Investment opportunity that has come her way. A company is raising money by Issuing shares of stock and wants her to Invest $20,000 (her recent inheritance from her great-aunt's estate). Your friend has never Invested in a company before and, knowing that you are a financlal analyst, asks that you look over the balance sheet and send her some advce. An unaudited balance sheet, In only moderately good form, is enclosed with the letter. There is only one disclosure note, and It states that the bullding was purchased for $65,000, has been depreclated by $5,000 on the books, and still carrles a mortgage (shown in the liability section). The note also states that, in the opinlon of the company president, the building is "easlly worth $98,000." Required: 1. Draft a new balance sheet for your frlend, correcting any errors you note. (f any of the account balances need to be corrected, you may need to adjust the retained earnings balance correspondingly.) If there are no errors or omissions, so state. (Negative amounts should be indicated with a minus sign.)
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