Suppose a business commits accounting fraud by deliberately not recording $465,000 liabilities for unpaid expenses at the end of the year. How should its balance sheet be adjusted to correct for this accounting fraud, ignoring income tax effects?
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Cash |
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Accounts Payable |
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Accounts Receivable |
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Notes Payable |
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Inventory |
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Owners’ Equity |
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Fixed Assets (Net of Accumulated Depreciation) |
_____ |
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_____ |
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Total Assets |
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Total Liabilities and Owners’ Equity |
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