Balance SheetBelow is the balance sheet for Labyrinth Services Co., which contains errors.Labyrinth Services Co.Balance SheetFor the Year Ended August 31, 20Y3Assets Current assets: Cash$18,500 Accounts payable31,300 Supplies6,500 Prepaid insurance16,600 Land225,000 Total current assets $297,900Property, plant, and equipment: Building$400,000 Equipment97,000 Total property, plant, and equipment 635,400Total assets $933,300Liabilities Current liabilities: Accounts receivable$41,400 Accumulated depreciation—building155,000 Accumulated depreciation—equipment25,000 Net income118,200 Total liabilities $339,600Owner's Equity Wages payable$6,500 Ruben Daniel, Capital587,200 Total owner's equity 593,700Total liabilities and owner's equity $933,300Required:Prepare a corrected balance sheet.Labyrinth Services Co.August 31, 20Y3AssetsCurrent assets: $Cash Accounts receivable Supplies Prepaid insurance Total current assets $fill in the blank 9Property, plant, and equipment: $Land $Building Less accumulated depreciation-buildingLess accumulated depreciation-building $Equipment Less accumulated depreciation-equipmentLess accumulated depreciation-equipment Total property, plant, and equipment fill in the blank 22Total assets $fill in the blank 23LiabilitiesCurrent liabilities: $Accounts payable Wages payable Total liabilities $fill in the blank 28Owner's Equity Ruben Daniel, capitalTotal liabilities and owner's equity $fill in the blank 31

Solution The balance sheet is a financial statement which contain the Assets, Liabilities and…

Answered: Balance Sheet

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

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