Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 4.13EX
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, 2018 | ||
| Assets | ||
| Current assets: | ||
| Cash................................................................ | $ 18,500 | |
| Accounts payable.................................................... | 31,300 | |
| Supplies............................................................ | 6,500 | |
| Prepaid insurance................................................... | 16,600 | |
| Land................................................................ | 225,000 | |
| Total current assets................................................ | $297,900 | |
| Property, plant, and equipment: | ||
| Building............................................................. | $400,000 | |
| Equipment.......................................................... | 97,000 | |
| Total property, plant, and equipment................................ | 635,400 | |
| Total assets............................................................ | $933,300 | |
| Liabilities | ||
| Current liabilities: | ||
| Accounts receivable.................................................. | $ 41,400 | |
| 155,000 | ||
| Accumulated depreciation—equipment................................... | 25,000 | |
| Net income.......................................................... | 118,200 | |
| Total liabilities......................................................... | $339,600 | |
| Stockholders’ Equity | ||
| Wages payable........................................................ | $ 6,500 | |
| Common stock......................................................... | 75,000 | |
| 512,200 | ||
| Total stockholders’ equity............................................... | 593700 | |
| Total liabilities and stockholders’ equity.................................. | $933,300 | |
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Chapter 4 Solutions
Financial & Managerial Accounting
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