Question : 187. The following balance sheet contains errors. Brock Morton Services Co.Balance SheetFor : 1239737

 

187. The following balance sheet contains errors. 

Brock Morton Services Co.Balance SheetFor the Year Ended December 31, 2011

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

Property, plant, and equip:

 

 

Wages payable

$    1,500

    Building

$ 43,700

 

Capital stock

25,000

    Equipment

   29,250

 

Retained earnings

    63,645

    Total property, plant,    and equipment

$ 72,950

   

Total stockholders’ equity

$  90,145

 

 

 

Total liabilities and

 

Total assets

$131,510

   

   stockholders’ equity

$131,510

 

 

 

 

 

(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet. 

 

 

 

 

 

188. The following is the adjusted trial balance for Nadia Company prepared at the end of Nadia’s fiscal year. 

Nadia Company

Adjusted Trial Balance

December 31, 2014

Cash

5,130

 

Accounts Receivable

3,300

 

Prepaid Expenses

   420

 

Equipment

12,400

 

Accumulated Depreciation

 

2,200

Accounts Payable

 

700

Notes Payable – Due on June 30, 2015

 

3,070

Capital Stock

 

2,000

Retained Earnings

 

11,000

Dividends

700

 

Fees Earned

 

10,930

Wages Expense

2,450

 

Rent Expense

1,900

 

Utilities Expense

1,475

 

Depreciation Expense

1,150

 

Miscellaneous Expense

975

 

Totals

29,900

29,900

 

 

 

Prepare an income statement, retained earnings statement, and classified balance sheet. 

 

 

 

 

 

189. Prepare an income statement and a retained earnings statement for the month ended August 31, 2014, from the following T accounts of Marley Company. 

Prepaid Insurance

 

Accounts Receivable

 

Unearned Revenues

 

Wages Payable

1,100

 

 

5,400

 

 

 

1,400

 

 

425

 

135

 

  1,600   

 

 

400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained     Earnings

 

Dividends

 

Income Summary

 

Fees Earned

 

6,500

 

3,200

 

 

 

9,775

 

 

7,775

 

5,780

 

 

3,200

 

3,995

 

 

 

1,600

3,200

 

 

 

 

 

5,730

 

 

 

  400

 

 

 

 

 

 

 

 

 

9,775

 

 

 

 

 

 

 

 

 

 

 

 

 

Wages Expense

 

Rent Expense

 

Insurance Expense

 

Utilities Expense

2,200

 

 

990

 

 

285

 

 

95

 

   425

 

 

 

990

 

 

285

 

 

95

 

2,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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