The following balance sheet was prepared for Abbey Limited:
Other information you have gathered:
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a. |
Amounts due on borrowings by November 30, 2017 are as follows: |
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Bank loan |
$400 |
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Mortgage payable |
2,000 |
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Notes payable |
500 |
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b. |
Notes receivable that will be collected by November 30, 2017 amount to $5,000. |
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c. |
The building was sold on December 15, 2016 for $20,000. |
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Required:
- Identify the errors that exist in the balance sheet of Abbey Limited and why you consider this information incorrect.
- Prepare a corrected, classified balance sheet.
- Based on the balance sheet categories, what additional information should be disclosed in the notes to the financial statements?
- 1453 reads
