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Unformatted text preview: Unit 1 Homework Assignment LO 4 EXERCISE 1-1 USERS OF ACCOUNTING INFORMATION AND THEIR NEEDS 1. Company management 2. Stockholder 3. Labor union 4. Securities and Exchange Commission 5. Banker 6. Supplier 7. Internal Revenue Service LO 5 PROBLEM 1-4 CORRECTED BALANCE SHEET 1. AVON CONSULTING INC. BALANCE SHEET DECEMBER 31, 2008 Assets Liabilities and Stockholders’ Equity Cash $21,000 Accounts payable $13,000 Accounts receivable 16,000 Capital stock 20,000 Supplies 9,000 Retained earnings 56,000 * Furniture and equipment 43,000 Total liabilities and Total assets $89,000 stockholders’ equity $89,000 *$72,000 – $16,000 2. Memorandum to the company president: TO: Company president FROM: Student’s name DATE: January 1, 2009 SUBJECT: Corrected balance sheet Attached please find the original balance sheet your assistant prepared, along with a corrected version of that same statement. The differences can be explained as follows: 1. The balance sheet is always as of a certain date, in this case, December 31, 2008, rather than...
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