Eric Wood, CPA, was organized on January 1, 2015, as a proprietorship. List the 12 errors that you find in the following financial statements for the three months ended March 31, 2015. Eric Wood, CPA Income Statement For the Three Months Ended March 31, 2015 Fees earned $42,000 Operating expenses: Salary expense $9,735 Rent expense 5,200 Wages expense 3,950 Utilities expense 3,225 Miscellaneous expense 4,000 Answering service expense 2,550 Supplies expense 4,000 Total operating expenses 28,000 Net income $14,000 Eric Wood, CPA Statement of Owner's Equity March 31, 2015 Eric Wood, capital, January, 1, 2015 $ 0 Investment on January 1, 2015 $20,000 Net income for the 3 months 14,000 36,000 Less withdrawals 5,000 Increase in owner's equity 31,000 Eric Wood, capital, March 31, 2015 $31,000 Balance Sheet For the Three Months Ended March 31, 2015 Assets Owner's Equity Land $13,000 Eric Wood, capital $31,000 Cash 10,860 Liabilities Accounts payable 2,670 Accounts receivable 2,225 Supplies 925 Total liabilities and Total assets $33,225 owner's equity $33,225
Transcribed Image Text:3:47
:3 IncorrectFinancialState...
Eric Wood, CPA, was organized on January 1, 2015, as a proprietorship.
List the 12 errors that you find in the following financial statements for the three months ended March 31, 2015.
Fees earned
Operating expenses:
Salary expense
Rent expense
Wages expense
Utilities expense
Miscellaneous expense
Answering service expense
Supplies expense
Total operating expenses
Net income
Eric Wood, capital, January, 1, 2015
Investment on January 1, 2015
Net income for the 3 months
Less withdrawals
Increase in owner's equity
Eric Wood, capital, March 31, 2015
Land
Cash
Accounts payable
Supplies
Total assets
Assets
Eric Wood, CPA
Income Statement
For the Three Months Ended March 31, 2015
Eric Wood, CPA
Statement of Owner's Equity
March 31, 2015
Balance Sheet
For the Three Months Ended March 31, 2015
Owner's Equity
$13,000 Eric Wood, capital
10,860
2,670 Accounts receivable
Total liabilities and
925
$33,225
owner's equity
Liabilities
$9,735
5,200
3,950
3,225
4,000
2,550
4,000
$20,000
14,000
36,000
5,000
3
Done
$42,000
28,000
$14,000
$0
31,000
$31,000
$31,000
2,225
$33,225
Transcribed Image Text:3:47
:3 IncorrectFinancialState...
Eric Wood, CPA, was organized on January 1, 2015, as a proprietorship.
List the 12 errors that you find in the following financial statements for the three months ended March 31, 2015.
Fees earned
Operating expenses:
Salary expense
Rent expense
Wages expense
Utilities expense
Miscellaneous expense
Answering service expense
Supplies expense
Total operating expenses
Net income
Eric Wood, capital, January, 1, 2015
Investment on January 1, 2015
Net income for the 3 months
Less withdrawals
Increase in owner's equity
Eric Wood, capital, March 31, 2015
Land
Cash
Accounts payable
Supplies
Total assets
Assets
Eric Wood, CPA
Income Statement
For the Three Months Ended March 31, 2015
Eric Wood, CPA
Statement of Owner's Equity
March 31, 2015
Balance Sheet
For the Three Months Ended March 31, 2015
Owner's Equity
$13,000 Eric Wood, capital
10,860
2,670 Accounts receivable
Total liabilities and
925
$33,225
owner's equity
Liabilities
$9,735
5,200
3,950
3,225
4,000
2,550
4,000
$20,000
14,000
36,000
5,000
3
Done
$42,000
28,000
$14,000
$0
31,000
$31,000
$31,000
2,225
$33,225
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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