Prepare a corrected balance sheet of the company

Assignment Help Accounting Basics

Reference no: EM131989518

Problem

TESCO Co Ltd
Balance Sheet
December 31, 2017
Assets                                                                Liabilities
Cash                                $11,000                       Accounts Payable          $18,000
Supplies                           7,000                           Accounts receivable         (30,500)
Equipment                        48,000                         Common Stock                             93,500
Rent expense                    12,000                         Preferred Stock                            35000
Utilities expenses               15000                          Salaries expenses                         4000
Insurance expense             3000                            Inventory                                    (16000)
Insurance payable             (3000)                            Interest expense                        3000
Property and Plant            70000                             Marketable securities                   (27000)
Bonds payable                  (60000)                         Sales Revenue                             23,000
Total assets                     $103,000                       Total liabilities and owner's equity $103000

Analyze the balance Sheet of TESCO Co Ltd.

1. Identify the mistakes on the balance sheet
2. Prepare a corrected balance sheet of the company.
3. How much financing is done through Bonds? And through Stock?

Reference no: EM131989518

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