Problem
TESCO Co Ltd
Balance Sheet
December 31, 2017
Assets Liabilities
Cash $11,000 Accounts Payable $18,000
Supplies 7,000 Accounts receivable (30,500)
Equipment 48,000 Common Stock 93,500
Rent expense 12,000 Preferred Stock 35000
Utilities expenses 15000 Salaries expenses 4000
Insurance expense 3000 Inventory (16000)
Insurance payable (3000) Interest expense 3000
Property and Plant 70000 Marketable securities (27000)
Bonds payable (60000) Sales Revenue 23,000
Total assets $103,000 Total liabilities and owner's equity $103000
Analyze the balance Sheet of TESCO Co Ltd.
1. Identify the mistakes on the balance sheet
2. Prepare a corrected balance sheet of the company.
3. How much financing is done through Bonds? And through Stock?