While Jon Lune was on a business trip, he asked Abby Slowe, the book-keeper for Lune Co.,

Question:

While Jon Lune was on a business trip, he asked Abby Slowe, the book-keeper for Lune Co., to try to complete a balance sheet for the year ended December 31, 2013. Abby, who had been on the job only two months, submitted the following:

1. Help Abby fix as well as complete the balance sheet.

2. What written recommendations would you make about the bookkeeper? Should she be retained?

3. Suppose that (a) Jon Lune invested an additional $20,000 in cash as well as additional desks with a value of $8,000 and (b) Lune Co. bought an auto for $6,000 that was originally marked $8,000, paying $2,000 down and issuing a note for the balance. Prepare an updated balance sheet. Assume that these two transactions occurred on January 4.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...