The Accountant for Tibbo Industries Is Required to Prepare Monthly $\quad$

question 68

Essay

The accountant for Tibbo Industries is required to prepare monthly financial statements.Upon opening the file with the previous month's balance sheets,the accountant notices that they have been prepared incorrectly.Prepare a corrected November balance sheet based on the information below.
Balance Sheet for
Tibbo Industries
Prepared on
November 29,2009
Assets $\quad$ $\quad$ $\quad$ Liabilities and Owners Equity $\begin{array}{lll}\text { Merchandise inventory } & 8,000 & \text { Office supplies } &5\\\text { Accounts payable } & 4,500 & \text { Long term debt }&1 \\\text { Cash } & 9,000 & \text { Owners equity }&5 \\\text { Owners' equity } & 50,500 & \text { Prepaid expenses }&5 \\\text { Property and equipment } & 50,500 &\end{array}$

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Definitions:

Goods

All physically existing things that are movable at the time of identification to the contract for sale.

United States Code

A comprehensive consolidation and codification of the general and permanent federal statutes of the United States.

Bankruptcy Code

The collection of laws and regulations that govern the process of bankruptcy in the United States.

Voluntary Liquidation

The process of dissolving a company by its own decision, distributing its assets to creditors and shareholders.