The dollar amounts were tak en direc tly from the c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: on" investment? Dividends. Repayment of a loan. Purchase of an asset. Securing a loan. Multiple Choice 12. Learning Objective: 01­03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information. awar d: 20 out of 20.00 points The night manager of Dix ie Trans portation Serv ic e, who had no ac c ounting bac k ground, prepared the following balanc e s heet for the c ompany at February 28, 2011. The dollar amounts were tak en direc tly from the c ompany 's ac c ounting rec ords and are c orrec t. Howev er, the balanc e s heet c ontains a number of errors in its headings , format, and the c las s ific ation of as s ets , liabilities , and owners ' equity . DIXIE TRANSPORTATION SERVICE MANAGER’S REPORT 8 P.M. THURSDAY Assets Owners' Equity Capital Stoc k $ 92,000 Ac c ounts Rec eiv able Retained Earnings 62,000 Notes Pay able Cas h 69,000 Supplies Building 80,000 Land Automobiles 165,000 Ac c ounts Pay able $ 468,000 $ 70,000 288,000 14,000 70,000 26,000 $ 468,000 Prepare a c orrec ted balanc e s heet. Inc lude a proper heading. (Be sure to list the assets and liabilities in order of their liquidity. Om it the "$" sign in your response.) DIXIE TRANSPORTATION SERVICE Balanc e Sheet February 28, 2011 Assets Cash Accounts receivable Building Autom obiles Land Supplies Total As s ets Liabilities...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online