Question

E1-10B John Paul is the bookkeeper for Eaton Company. John has been trying to get the balance sheet of Eaton Company to balance. It finally balanced, but now he’s not sure it is correct.

EATON COMPANY Balance Sheet December 31, 2014
Assets				Liabilities and Stockholders’ Equity
Cash		$28,500		Accounts payable		$ 6,000
Supplies		4,500		Accounts receivable		(15,000)
Equipment		30,000		Common stock		42,000
Dividends		10,000		Retained earnings		40,000
Total assets		$73,000		Total liabilities and     stockholders’ equity		$73,000

Instructions

Prepare a correct balance sheet.

Answer 1

EATON COMPANY

Balance Sheet as on December 31, 2014

Particulers	Note no.	Amount
I Equity And Liabilities
1)Share Holder's Funds
a) Sahre Capital	1	42,000
b) Reserve and Surplus	2	40,000
Total Sahre Holder's Funds		82000
2)Non Current Liabilites		-
3)Current Liabilities
a)Trade Payable	3	6,000
Total Current Liabilities		6,000
Total Equity & Liabilities		88,0000
II Assets
1) Non Current Asset
a)Fixed -Tangible Assets	4	30,000
2)Current Assets
a)Inventories	5	4,500
b)Trade Receivable	6	15,000
c)Case & bank balance		28,500
d) Short term Loans and Advance	7	10,000
Total current Assets		58,000
Total assets		88,000

Notes

1)Sahre Capital
Common Stock	42,000
2)Reserve and Surplus
Retain earning	40,000
3)Trade Apyable
Account Apyable	6,000
4)Tangible Fixed Asset
Equipment	30,000
5)Inventories
Supplies	4,500
6)Trade Receivable
Account Receivable	15,000
7)Short term Loans & Advance	10,000