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1. The following balance sheet has been submitted to you by an inexperienced bookkeeper. List your suggestions for improvements in the format of the balance sheet on the next page. Consider both terminology deficiencies as well as classification inaccuracies. You will need to have at least 16 correct (there are 24 items) to receive full points. Ignore Dollar amounts and 'total amounts' 2. Save this file as: yourlastname Activity and submit through moodle. Waffle Motoring, Inc. Balance Sheet For the Period Ended 12/31/18 Assets $ 110,000 (40,000) Fixed Assets-Tangible Equipment Less: reserve for depreciation Factory supplies Land and buildings Less: reserve for depreciation 70,000 22,000 400,000 (150,000) 250,000 (150,000) 250,000 90,000 $ 432,000 80,000 40,000 26,000 146,000 Less: reserve for depreciation Plant site held for future use Fixed Assets--Intangible Goodwill Notes receivable Patents Current Assets Accounts receivable Cash Inventory Treasury stock (at cost) Deferred Charges Advances to salespersons Prepaid rent Returnable containers TOTAL ASSETS 175,000 80,000 200,000 40,000 495,000 60,000 27,000 75,000 162,000 $ 1,235,000 Liabilities Current Liabilities Accounts payable Allowance for doubtful accounts $ 140,000 8,000 8,000 35,000 42,000 17,000 $ 242,000 Allowance for doubtful accounts Common stock dividend distributable Income tax payable Sales tax payable Long-Term Liabilities, 5% debenture bonds, due 2025 Reserve for contingencies TOTAL LIABILITIES Equity $ 500,000 150,000 650,000 892,000 Add footer Add header Capital stock, $10 par value, issued 12,000 shares with 60 shares held as treasury stock Capital surplus 150,000 90,000 (20,000) 123,000 Dividends paid Earned surplus TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 343,000 $ 1,235,000 Note 1. The reserve for contingencies has been created by charges to earned surplus and has been established to provide a cushion for future uncertainties. Note 2. The inventory account includes only items physically present at the main plant and warehouse. Items located at the company's branch sales office, amounting to $40,000, are excluded since the company has consistently followed this procedure for many years

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