ewis Music recently hired you because they're aware that you're familiar with financial statements and what should be included them. Before issuing their Balance Sheet, they've asked you to review the statement and identify any errors. ist 2 errors you see in the statement below. Assets Liabilities Current assets: Current liabilities: Cash $7,170 Accounts receivable $10,000 Accounts payable 7,500 Accum. depr.-building 12,525 Supplies 2,590 Accum. depr.-equipment 7,340 Prepaid insurance 800 Net income 11,500 Land 24,000 Total current assets $ 42,060 Total liabilities $41,365 Stockholders' Equity Wages payable $ 1,500 Property, plant, and equipment: $43,700 Common stock 86,645 Building 29,250 Retained earnings 2,000 Equipment
ewis Music recently hired you because they're aware that you're familiar with financial statements and what should be included them. Before issuing their Balance Sheet, they've asked you to review the statement and identify any errors. ist 2 errors you see in the statement below. Assets Liabilities Current assets: Current liabilities: Cash $7,170 Accounts receivable $10,000 Accounts payable 7,500 Accum. depr.-building 12,525 Supplies 2,590 Accum. depr.-equipment 7,340 Prepaid insurance 800 Net income 11,500 Land 24,000 Total current assets $ 42,060 Total liabilities $41,365 Stockholders' Equity Wages payable $ 1,500 Property, plant, and equipment: $43,700 Common stock 86,645 Building 29,250 Retained earnings 2,000 Equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lewis Music recently hired you because they're aware that you're familiar with financial statements and what should be included
in them. Before issuing their Balance Sheet, they've asked you to review the statement and identify any errors.
List 2 errors you see in the statement below.
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 7,170
Accounts receivable
$10,000
Accounts payable
7,500
Accum. depr.-building
12,525
Supplies
2,590
Accum. depr.-equipment
7,340
Prepaid insurance
800
Net income
11,500
Land
24,000
Total current assets
$ 42,060
Total liabilities
$41,365
Stockholders' Equity
Wages payable
$ 1,500
Property, plant, and
equipment:
$43,700
Common stock
86,645
Building
29,250
Retained earnings
2,000
Equipment
Total stockholders' equity
Total property, plant,
and equipment
72,950
90,145
Total liabilities and
$131,510
stockholders' equity
$131.510
Total assets
Expert Solution
Step 1 Introduction
Balance sheet shows all the assets and liabilities of the business, which details the financial position of the business.
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