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The correct balance of equity should be?

The correct balance of equity should be?

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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On June 30, the balances in the General Ledger accounts of Easy Company resulted in the following totals: Assets P517,600 Liabilities 323,400 Equity 200,500 Total assets do not equal total liabilities plus equity because the following errors were made: Supplies of P500 were on hand but were not included in assets because all purchases were debited to Supplies Expense. Credit services revenue of P15,700 were posted to the Services Revenue account as P17,500. The Accounts Receivable account was posted correctly. Equipment purchased on credit for P51,600 was incorrectly posted to Notes Payable as P56,100. No error was made in the Equipment account. The correct balance of equity should be?
Transcribed Image Text:On June 30, the balances in the General Ledger accounts of Easy Company resulted in the following totals: Assets P517,600 Liabilities 323,400 Equity 200,500 Total assets do not equal total liabilities plus equity because the following errors were made: Supplies of P500 were on hand but were not included in assets because all purchases were debited to Supplies Expense. Credit services revenue of P15,700 were posted to the Services Revenue account as P17,500. The Accounts Receivable account was posted correctly. Equipment purchased on credit for P51,600 was incorrectly posted to Notes Payable as P56,100. No error was made in the Equipment account. The correct balance of equity should be?
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