Exercise 2.2 Preparing a Balance Sheet (LO2-4) The night manager of Willis Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, current year. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet contains a number of errors in its headings, format, and the classification of assets, liabilities, and owners’ equity.

WILLIS TRANSPORTATION SERVICE
Manager’s Report
8 P. M. Thursday
AssetsOwners' Equity
Capital stock$94,000Accounts receivable$72,000
Retained earnings 62,000Notes payable 281,000
Cash 74,000Supplies 14,000
Building 90,000Land 70,000
Automobiles 175,000Accounts payable 58,000
$495,000 $495,000
Prepare a corrected balance sheet.

Explanation:

The corrected sheet is given below

WILLIS TRANSPORTATION SERVICE

Balance sheet

Feb-28

Assets

Cash74000

Accounts Receivable72000

Supplies14000

Land70000

Buildings90000

Automobiles175000

Total495000

Liabilities & Owners' Equity

Liabilities:

Notes payable281000

Accounts Payable58000

Total Liabilities339000

Owners Equity:

Capital Stock94000

Retained earnings62000

Total495000

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.