Question

Heather Hire, a small business owner, just started her business during the year 2018, and is trying to determine the correct format for her financial statements. She has only a limited knowledge of accounting and she decided to hire Amy Action to help her prepare the financial statements for her business Heather’s Hair Creations. She has prepared the following Balance Sheet information for Amy Action to review: Heather’s Hair Creations Balance Sheet For the Year Ended December 31, 2018 Assets Liabilities Equipment $51,000 Owners’ Capital $52,000 Cash 18,000 Accounts Receivable (10,000) Supplies 6,000 Owner’s Drawing (4,000) Accounts Payable (16,000) Notes Payable 21,000 Total Assets $59,000 Total Liabilities $59,000 Explain what Amy Action should tell Heather regarding what are the problems and what items are incorrect in the Balance Sheet?

Answer 1

Ans:

Liabilities	Amount($)	Assets	Amount($)
Owners’ Capital           $52,000		Equipment	$51,000
Less: Drawings            ($4000)	$48,000	Cash	$18,000
Accounts Payable	$16000	Accounts Receivable	$10000
Notes Payable	$21000	Supplies	$6000
Totals	$85,000		$85,000

Note:

1.Drawings always less from the capital's

Actual ly here more information is required and I am Unable to obtain the full information how the amounts are debited or credited in the balance sheet is unable to know but this is the final answer actually If you have image is like this I can able to tell you what is wrong and what is not wrong So Please kindly if you satisfy with the above then ok otherwise please give the exact picture how the it is debited or credited in a table format so that I can able to help you