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Unformatted text preview: 11. "Reserve" for Income Taxes should be titled Income Taxes Payable. 12. The small balance of $3 for customer's accounts with credit balances, while not erroneously classified, might be offset against and buried in the Accounts Receivable account because it is so small in amount. 13. The maturity date and the interest rate should be disclosed for the Bonds Payable. 14. "Capital Stock" listed as title should be "Stockholders' Equity;" "Capital stock" listed as account should be Common stock. 15. More information relative to the capital stock, such as par value and the number of shares authorized, issued, and outstanding should be disclosed. 16. "Earned surplus" should not be used; Retained Earnings is the preferred title. 17. Cash dividends declared is actually Dividends Payable and should be classified as a current liability....
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- Spring '10