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Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 Assets Current assets: Cash $18,500

Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 Assets Current assets: Cash $18,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Below is a balace sheet that contains errors. How would I prepare a correct balance sheet? 

Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 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 Accumulated depreciation-building 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 Retained earnings 512,200 Total stockholders' equity 593,700 Total liabilities and stockholders' equity $933,300
Transcribed Image Text:Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 20Y3 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 Accumulated depreciation-building 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 Retained earnings 512,200 Total stockholders' equity 593,700 Total liabilities and stockholders' equity $933,300
Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet August 31, 20Y3 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Total liabilities Stockholders' Equity. Total stockholders equity Total liabilities and stockholders' equity
Transcribed Image Text:Prepare a corrected balance sheet. Labyrinth Services Co. Balance Sheet August 31, 20Y3 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Total liabilities Stockholders' Equity. Total stockholders equity Total liabilities and stockholders' equity
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