Q51PGB

Question

Question: The bookkeeper of Juniper Landscaping prepared the company’s balance sheet while the accountant was ill. The balance sheet, shown on the next page, contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the retained earnings amount needed to achieve this balance. The retained earnings is incorrect. All other amounts are correct, but some are out of place or should not be included on this statement. Prepare a corrected balance sheet. JUNIPER LANDSCAPING Balance Sheet Month Ended July 31, 2018 Accounts Receivable Dividends Service Revenue Office Supplies Salaries Expense Property Tax Expense Accounts Payable Retained Earnings Total Liabilities Common Stock Office Furniture Notes Payable Rent Expense Total Assets Assets Liabilities Stockholders’ Equity $ 5,300 $ 75,100 800 34,500 3,200 6,300 24,700 300 $ 1,800 14,000 38,000 $ 75,100 3,300 2,700 5,300 10,000 J

Step-by-Step Solution

Verified

Answer

JUNIPER LANDSCAPING
Balance Sheet
July 31, 2018
Assets		Liabilities
Cash	$5,300	Accounts Payable	$2,700
Land	34,500	Notes Payable	24,700
Office Supplies	800	Total Liabilities	27,400
Office Furniture	6,300	Stockholders’ Equity
Accounts Receivable	1,800	Common Stock	10,000
		Retained Earnings	11,300
		Total Stockholders’ Equity	21,300
Total Assets	$48,700	Total Liabilities and Stockholders’ Equity	$48,700