Reference no: EM132474455

Point 1: Accountant and owner of Quick Renovations, C. Cloud had to go out of town to inspect a job site. Thus, he asked his cousin, Joseph Jordan, to prepare Quick Renovations' December 31, 2018 balance sheet. Joseph Jordan had no knowledge of accounting, but he did know that the balance sheet had to balance; therefore, in order to accomplish this, he had to use a plugged figure for owner's equity. The other accounts have the correct balances, but the totals may not be correct.

Assets	Quick Renovations Balance Sheet December 31, 2018	Liabilities
Cash	2,000	Service Revenue	200,000
Supplies	4,500	Mortgage Payable	65,000
Building	85,000	Accounts Receivable	16,000
Land	120,000	Total Liabilities	281,000
Salary Expense	80,000
Accounts Payable	25,000	Owner's Equity
Rent Expense	12,000	C. Cloud. Capital	47,500
Total Assets	328.500	Total Liabilities & Owner's Equity	328,500

Question 1: Prepare the correct December 31, 2018 balance sheet of Quick Renovations.