Eric Wood, CPA, was organized on January 1, 2015, as a proprietorship. List the 12 errors that you find in the following financial statements for the three months ended March 31, 2015. Eric Wood, CPA Income Statement For the Three Months Ended March 31, 2015 Fees earned $42,000 Operating expenses: Salary expense $9,735 Rent expense 5,200 Wages expense 3,950 Utilities expense 3,225 Miscellaneous expense 4,000 Answering service expense 2,550 Supplies expense 4,000 Total operating expenses 28,000 Net income $14,000 Eric Wood, CPA Statement of Owner's Equity March 31, 2015 Eric Wood, capital, January, 1, 2015 $ 0 Investment on January 1, 2015 $20,000 Net income for the 3 months 14,000 36,000 Less withdrawals 5,000 Increase in owner's equity 31,000 Eric Wood, capital, March 31, 2015 $31,000 Balance Sheet For the Three Months Ended March 31, 2015 Assets Owner's Equity Land $13,000 Eric Wood, capital $31,000 Cash 10,860 Liabilities Accounts payable 2,670 Accounts receivable 2,225 Supplies 925 Total liabilities and Total assets $33,225 owner's equity $33,225
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