Balance Sheet

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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  
   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
Owner's Equity    
Wages payable $6,500  
Ruben Daniel, Capital 587,200  
Total owner's equity   593,700
Total liabilities and owner's equity   $933,300

Required:

Prepare a corrected balance sheet.

Labyrinth Services Co.August 31, 20Y3

Assets
Current assets:      
 
  $Cash  
 
  Accounts receivable  
 
  Supplies  
 
  Prepaid insurance  
Total current assets     $fill in the blank 9
Property, plant, and equipment:      
 
  $Land  
 
$Building    
 
Less accumulated depreciation-building Less accumulated depreciation-building  
 
$Equipment    
 
Less accumulated depreciation-equipment Less accumulated depreciation-equipment  
Total property, plant, and equipment     fill in the blank 22
Total assets     $fill in the blank 23
Liabilities
Current liabilities:      
 
  $Accounts payable  
 
  Wages payable  
Total liabilities     $fill in the blank 28
Owner's Equity
 
    Ruben Daniel, capital
Total liabilities and owner's equity     $fill in the blank 31
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