Draft a memo explaining the major differences between the

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Reference no: EM13589479

Dave is the president of Avon Consulting Inc. Avon began business on January 1, 2012. The company's controller is out of the country on business. Dave needs a copy of the company's balance sheet for a meeting tomorrow and asks his assistant to obtain the required information from the company's records. She presents Dave with the following balance sheet. He asks you to review it for accuracy.
Avon Consulting Inc.
Balance Sheet
For the Year Ended December 31, 2012
Assets   Liabilities and Stockholders' Equity
Accounts payable $13,000     Accounts receivable      $16,000
Cash                                    21,000      Capital stock 20,000
Cash dividends paid           16,000     Net income for 2012     72,000
Furniture and equipment    43,000        Supplies 9,000
Required
1. Prepare a corrected balance sheet.
2. Draft a memo explaining the major differences between the balance sheet Dave's assistant prepared and the one you prepared.

Reference no: EM13589479

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