Question

The night manager of Dixie Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2011. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owners’ equity. DIXIE TRANSPORTATION SERVICE MANAGER’S REPORT 8 P.M. THURSDAY Assets Owners’ Equity Capital Stock . . . . . . . . . . . . . . $ 92,000 Accounts Receivable . . . . . . . . $ 70,000 Retained Earnings . . . . . . . . . . 62,000 Notes Payable . . . . . . . . . . . . . 288,000 Cash . . . . . . . . . . . . . . . . . . . . . 69,000 Supplies . . . . . . . . . . . . . . . . . . 14,000 Building . . . . . . . . . . . . . . . . . . 80,000 Land . . . . . . . . . . . . . . . . . . . . . 70,000 Automobiles . . . . . . . . . . . . . . . 165,000 Accounts Payable. . . . . . . . . . . 26,000 $468,000 $468,000

Answer 1