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French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income statement and balance sheet that follow and identify the errors Taylor made (he did not prepare a statement of owner’s equity). FASHION HOUSE BEAUTY SUPPLY Income Statement April 30, 20X1 Revenue Fees income $ 47,000 Expenses Salaries expense $ 12,200 Rent expense 3,070 Repair expense 1,060 Utilities expense 1,620 Drawing 5,560 Total expenses 23,510 Net income $ 29,090 FASHION HOUSE BEAUTY SUPPLY Balance Sheet Month Ended April 30, 20X1 Assets Liabilities Land $ 26,000 Accounts receivable $ 14,980 Building 46,620 Cash 18,360 Owner’s Equity Accounts payable 5,190 French Taylor, Capital, April 1, 20X1 77,280 Total Assets $ 86,510 Total Liabilities and Owner’s Equity $ 92,260 Required: Prepare a corrected income statement and balance sheet, as well as a statement of owner’s equity, for Fashion House Beauty Sup

French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income statement and balance sheet that follow and identify the errors Taylor made (he did not prepare a statement of owner’s equity). FASHION HOUSE BEAUTY SUPPLY Income Statement April 30, 20X1 Revenue Fees income $ 47,000 Expenses Salaries expense $ 12,200 Rent expense 3,070 Repair expense 1,060 Utilities expense 1,620 Drawing 5,560 Total expenses 23,510 Net income $ 29,090 FASHION HOUSE BEAUTY SUPPLY Balance Sheet Month Ended April 30, 20X1 Assets Liabilities Land $ 26,000 Accounts receivable $ 14,980 Building 46,620 Cash 18,360 Owner’s Equity Accounts payable 5,190 French Taylor, Capital, April 1, 20X1 77,280 Total Assets $ 86,510 Total Liabilities and Owner’s Equity $ 92,260 Required: Prepare a corrected income statement and balance sheet, as well as a statement of owner’s equity, for Fashion House Beauty Sup

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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French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income statement and balance sheet that follow and identify the errors Taylor made (he did not prepare a statement of owner’s equity). FASHION HOUSE BEAUTY SUPPLY Income Statement April 30, 20X1 Revenue Fees income $ 47,000 Expenses Salaries expense $ 12,200 Rent expense 3,070 Repair expense 1,060 Utilities expense 1,620 Drawing 5,560 Total expenses 23,510 Net income $ 29,090 FASHION HOUSE BEAUTY SUPPLY Balance Sheet Month Ended April 30, 20X1 Assets Liabilities Land $ 26,000 Accounts receivable $ 14,980 Building 46,620 Cash 18,360 Owner’s Equity Accounts payable 5,190 French Taylor, Capital, April 1, 20X1 77,280 Total Assets $ 86,510 Total Liabilities and Owner’s Equity $ 92,260 Required: Prepare a corrected income statement and balance sheet, as well as a statement of owner’s equity, for Fashion House Beauty Sup
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