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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