Question: Balance Sheet Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31,
Balance Sheet
Below is the balance sheet for Labyrinth Services Co., which contains errors.
| Labyrinth Services Co. | ||
| Balance Sheet | ||
| For the Year Ended August 31, 2018 | ||
| Assets | ||
| Current assets: | ||
| Cash | $21,300 | |
| Accounts payable | 31,200 | |
| Supplies | 9,700 | |
| Prepaid insurance | 17,500 | |
| Land | 232,500 | |
| Total current assets | $312,200 | |
| Property, plant, and equipment: | ||
| Building | $486,400 | |
| Equipment | 110,100 | |
| Total property, plant, and equipment | 809,200 | |
| Total assets | $1,121,400 | |
| Liabilities | ||
| Current liabilities: | ||
| Accounts receivable | $48,500 | |
| Accumulated depreciationbuilding | 200,300 | |
| Accumulated depreciationequipment | 32,600 | |
| Net income | 178,100 | |
| Total liabilities | $459,500 | |
| Stockholders' Equity | ||
| Wages payable | $3,500 | |
| Common stock | 150,000 | |
| Retained earnings | 508,400 | |
| Total stockholders' equity | 661,900 | |
| Total liabilities and stockholders' equity | $1,121,400 | |
Prepare a corrected balance sheet.
| Assets | |||
| Current assets: | |||
| Accounts payableBuildingCashEquipmentLand | $- Select - | ||
| Accounts receivableBuildingCommon stockEquipmentLand | - Select - | ||
| Accounts payableAccumulated depreciationLandSuppliesWages payable | - Select - | ||
| Accumulated depreciationBuildingEquipmentLandPrepaid insurance | - Select - | ||
| Total current assets | $fill in the blank 9 | ||
| Property, plant, and equipment: | |||
| Accounts receivableAccumulated depreciationCashLandSupplies | $- Select - | ||
| BuildingCashPrepaid insuranceSuppliesWages payable | $- Select - | ||
| Accounts payableAccumulated depreciation - buildingCashLandSupplies | - Select - | ||
| Accounts payableBook value - buildingCashLandSupplies | - Select - | ||
| Accounts receivableAccumulated depreciationEquipmentLandSupplies | $- Select - | ||
| Accounts payableAccumulated depreciation - equipmentEquipmentLandPrepaid insurance | - Select - | ||
| Accounts payableBook value - equipmentEquipmentLandPrepaid insurance | - Select - | ||
| Total property, plant, and equipment | fill in the blank 24 | ||
| Total assets | $fill in the blank 25 | ||
| Liabilities | |||
| Current liabilities: | |||
| Accounts payableAccounts receivableCashEquipmentSupplies | $- Select - | ||
| BuildingEquipmentPrepaid insuranceWages expenseWages payable | - Select - | ||
| Total liabilities | $fill in the blank 30 | ||
| Stockholders' Equity | |||
| Accounts payableCashCommon stockEquipmentSupplies | $- Select - | ||
| Accounts payableIncome tax payablePrepaid insuranceRetained earningsWages payable | - Select - | ||
| Total stockholders' equity | fill in the blank 35 | ||
| Total liabilities and stockholders' equity | $fill in the blank 36 | ||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
