Problem: The following classified Balance Sheet has numerous errors. Indicate in this Balance Sheet by describing in words the deficiencies.
Tigeress Company, Inc.
Tire Balance
For the year ended Dec. 31, 2001
Assets, Liabilities and Net Worth
Building, at cost $8700 Accumulated Depreciation $2300
Land, appraised value $5000 Note Payable (due 2005) $4000
Inventory, retail price $6000 Common Stock $10000
Accounts Receivable $3500 Retained Earnings $ 500
Accounts payable ($1600) Total Liabilities $16800
Cash $1200 Amount to balance $6000
Total Assets $22800 Total Liab. & Net Worth $22800
Additional information:
Land has an original cost of $2000 and inventory cost the company $3000.