ART SPECIALISTS, INC - CASE STUDY 1

Please do the three items in the "required" section. Thank you so much!

Jefferson Jerome is interested in purchasing "Art Specialists Inc an auction house. The company receives the right to sell art but not to purchase the art themselves for a 5% commission. Art Specialists rents office space and Chelsea and holds its auctions at local hotels. Art Specialist Inc. Unadjusted Trial Balance December 31, 2013 35,000.00 Cash 60,000.00 Accounts receivable Supplies 8,000.00 53,000.00 Equipment Accumulated Depreciation 14,500.00 Accounts payable 5,600.00 50,000.00 Dividends Capital stock 25,000.00 84,900.00 Retained earnings 244,000.00 Commission income 20,000.00 Rent Expense 70,000.00 Wages Expense 56,000.00 Auction Expenses Depreciation Expenses 7,000.00 Membership Expenses 6,000.00 Supplies Expense 9,000.00 374,000.00 TOTAL 374,000.00 As Jefferson's accountant, you have received the trial balance above as well as the general ledger. The review has found the following errors Year end bank reconciliation showed that the balance should be $30,000. A customer should have been billed for commissions earned but it was recorded as a cash payment of the commission income. Membership expenses are not related to the business and should be shown as a dividend to shareholder Depreciation expense should be $3,500 for the year Supplies expenses failed to record $2,000 in packing supplies used during the year. Accounts receivables that have not been billed $10,000