A friend of yours has prepared the following balance sheet for his bicycle shop but it has a problem.He thought his total assets did not reflect the assets available to the firm.He has asked you to take a look at this balance sheet and help him out.

Required:
a.Prepare a corrected balance sheet for Eric's Bike Shop, Inc.
b.Draft a memo to Eric explaining the errors you corrected. Include your reasons.

Question

A friend of yours has prepared the following balance sheet for his bicycle shop but it has a problem.He thought his total assets did not reflect the assets available to the firm.He has asked you to take a look at this balance sheet and help him out.
 
Required:
a.Prepare a corrected balance sheet for Eric's Bike Shop, Inc.
b.Draft a memo to Eric explaining the errors you corrected. Include your reasons.

Quizplus · Accepted Answer

The Answer of A friend of yours has prepared the following balance sheet for his bicycle shop but it has a problem.He thought his total assets did not reflect the assets available to the firm.He has asked you to take a look at this balance sheet and help him out.
 
Required:
a.Prepare a corrected balance sheet for Eric's Bike Shop, Inc.
b.Draft a memo to Eric explaining the errors you corrected. Include your reasons.

A Friend of Yours Has Prepared the Following Balance Sheet