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187. The following balance sheet contains errors.
Brock Morton Services Co.
Balance Sheet
For the Year Ended December 31, 2010
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
Owner's Equity
Property, plant, and equipment:
Wages payable
$
1,500
Building
$43,700
Brock Morton, Capital
88,645
Equipment
29.250
Total owner's equity
$ 90,145
Total property, plant,
and equipment
72,950
Total liabilities and
Total assets
$131,510
owner's equity
$131,510
(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.

Top Answer

a) The errors in the balance sheet are: The balance sheet is always as on date not for the year. Land has been included in... View the full answer

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