List the errors you find in the following balance sheet. Prepare a corrected balance sheet.Labyrinth Services Co.Balance SheetFor the Year Ended August 31, 2019AssetsCurrent assets:Cash ..Accounts payable..Supplies .Prepaid insurance$ 18,50031,3006,500...16,600Land. .225,000Total current assets$297,900Property, plant, and equipment:Building....Equipment.Total property, plant, and equipment.$400,00097,000635,400Total assets..$933,300LiabilitiesCurrent liabilities:$ 41,400Accounts receivable...Accumulated depreciation-building..Accumulated depreciation-equipment..155,00025,000Net income118,200Total liabilities$339,600Owner's Equity$ 6,500Wages payable ..Ruben Daniel, capital...Total owner's equity..Total liabilities and owner's equity..587,200593,700$933,300

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Asked Dec 5, 2019
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List the errors you find in the following balance sheet. Prepare a corrected balance sheet.
Labyrinth Services Co.
Balance Sheet
For the Year Ended August 31, 2019
Assets
Current assets:
Cash ..
Accounts payable..
Supplies .
Prepaid insurance
$ 18,500
31,300
6,500
...
16,600
Land. .
225,000
Total current assets
$297,900
Property, plant, and equipment:
Building....
Equipment.
Total property, plant, and equipment.
$400,000
97,000
635,400
Total assets..
$933,300
Liabilities
Current liabilities:
$ 41,400
Accounts receivable...
Accumulated depreciation-building..
Accumulated depreciation-equipment..
155,000
25,000
Net income
118,200
Total liabilities
$339,600
Owner's Equity
$ 6,500
Wages payable ..
Ruben Daniel, capital...
Total owner's equity..
Total liabilities and owner's equity..
587,200
593,700
$933,300
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List the errors you find in the following balance sheet. Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 2019 Assets Current assets: Cash .. Accounts payable.. Supplies . Prepaid insurance $ 18,500 31,300 6,500 ... 16,600 Land. . 225,000 Total current assets $297,900 Property, plant, and equipment: Building.... Equipment. Total property, plant, and equipment. $400,000 97,000 635,400 Total assets.. $933,300 Liabilities Current liabilities: $ 41,400 Accounts receivable... Accumulated depreciation-building.. Accumulated depreciation-equipment.. 155,000 25,000 Net income 118,200 Total liabilities $339,600 Owner's Equity $ 6,500 Wages payable .. Ruben Daniel, capital... Total owner's equity.. Total liabilities and owner's equity.. 587,200 593,700 $933,300

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Expert Answer

Step 1

Balance sheet of a company is a financial statement prepared by the company. It is prepared to calculate the balance of liabilities, assets of a company at a particular date. It is prepared to measure the financial position of a company.

Step 2

The errors in the presented balance sheet are as follows:

  • Account payable is shown in current assets. It should be shown under current liabilities.
  • Account receivable is shown under current liabilities. It should be shown under current assets.
  • Land is not a current asset, it should be shown under property, plant & equipment.
  • Building & equipment balance should be net of accumulated depr...

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