the following errors were reported by Claude Sample Sports Clinic during the month:An invoice for consultancy service provided to Running Track Club for $25,000 was left in a desk drawer unnoticed and had been omitted completely from the books. The records showed that a cash receipt for $15,000 was issued relating to this transaction while the balance was on account. The company records its consultancy fees in service revenue account.Purchase of medical supplies on February 3 was for $18,000and not $1,800 as previously incorrectly reported. On Feb 1 the $55,000 invested by Sample ought to have been allocated $45,000 bank account and $10,000 office equipment based on confirmation from the owner that the previous info provided was incorrectly stated.Drawings of $1,000 were not recorded.An electricity bill for $5,000 paid by cash was placed in a desk drawer and not presented with the first set of transactions. The company records its electricity charges in the utility expense account.Required:Prepare the Statement of owner’s equity for the month of February 2015.

A statement of Owner's Equity shows the changes in enterprise's equity during a particular period.…

Answered: Prepare the Statement of owner’s equity…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

the following errors were reported by Claude Sample Sports Clinic during the month:

An invoice for consultancy service provided to Running Track Club for $25,000 was left in a desk drawer unnoticed and had been omitted completely from the books. The records showed that a cash receipt for $15,000 was issued relating to this transaction while the balance was on account. The company records its consultancy fees in service revenue account.
Purchase of medical supplies on February 3 was for $18,000and not $1,800 as previously incorrectly reported.
On Feb 1 the $55,000 invested by Sample ought to have been allocated $45,000 bank account and $10,000 office equipment based on confirmation from the owner that the previous info provided was incorrectly stated.
Drawings of $1,000 were not recorded.
An electricity bill for $5,000 paid by cash was placed in a desk drawer and not presented with the first set of transactions. The company records its electricity charges in the utility expense account.

Required:

Prepare the Statement of owner’s equity for the month of February 2015.

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