The manager of City Naws, Inc, propared the companys balance sheet as of May 31,
ID: 2331282 • Letter: T
Question
The manager of City Naws, Inc, propared the companys balance sheet as of May 31, 2018, whilo the company's accountant was il. The balanco sheet contains numerous orrons. In particular, the manager knew that the balanco sheot shouid balanco, so she pluggod in the stockholdera oquity amount neaded to achiove this balanco. The staciholdors oquity amount is not comect. All othor amounts arc acourato. @(Cick the ioon bo view the manager's balance sheet.) Road tho recuiromenta. Roqu rement 1. Proparc he correct balanco shoot and date it propery. Compute total assots, total labilites, and stacholders' equity. (Do nat dasaify the balanoo sheot into current and long-torm sections. In tho first and stootoidors, couty socbon of the balance shoot lf box is not usod n the balance shoot, loave the box ompty: do not sciect a label or ontor a zaro.) ho asaots section of the balance sheat In tho ocond part complato the lablitea More Info City News,Inc Balance Sheet Assets Liabilities May 31, 2018 Assets Cash Equipment Accounts payable 6500 Office supplies Utiites expense 5 10000 Notes receivable 35,600 Intoroat oxpanso S 15,800 2,100 700 2,600 Total liabilities 1400 Accounts receivable Stockholders' Equity 50,000 400 Note payable Land 81,000 Tonal Salary expense 3,000Stockholders Equity 71,200 Total liabilitios and stockholderS Total assets Requirement 2. Is City News actually in better for worse) fnancial postion than the erroneous balance sheet reports? Give the reason for your answer. Stockholders' equty :100 0,700 financal p0Bläon because Total ascots $137,900 Total iabilifes S 137,900 by City News isistockholders' equity has iabiies have Print Done Requ rement 3. Idenify the accounts listed on the incomect balance sheet that should not be reported on the balance sheet State why you excluded them from the conrect balance sheet you prepared for Requirement 1. On which financial statement should these accounts appear? The acoounts 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 Accounting question | Chegg.comExplanation / Answer
1 City News Inc. Balance Sheet on May 31, 2018 Assets Liabilities Cash 10000 Accounts Payable 6500 Accounts Receivable 2600 Note Payable 50000 Notes Receivable 15800 Office supplies 700 Total lablities 56500 Land 81000 Stockholder's Equity Equipment 35600 Stockholder's Equity 89200 Total Assets 145700 Total liabilities and stockholder's equity 145700 2 City news is in better financial position because stockholders equity has increased by $22,500 and liabilities have decreased by $22500. 81400 3 The accounts that are not on balance sheet are: Utilities Expense Advertising expense Salary expense Interest expense These are excluded because they are nominal accounts. These accounts are listed on Income statement.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.