You have been asked to review the work sheet for Farmer Mac's Organic Plants. The Income Statement
Question:
You have been asked to review the work sheet for Farmer Mac's Organic Plants. The Income Statement Debit column shows a total of $85,500, the Income Statement Credit column shows a total of $103,200, the Balance Sheet Debit column shows a total of $346,700, and the Balance Sheet Credit column shows a total of $329,000. Net income of $17,700 has been subtracted from the Income Statement Credit column and the Balance Sheet Debit column. Which of the following would you report to Farmer Mac regarding the work sheet?
a. The net income of $17,700 should be added to the Income Statement Debit column and the Balance Sheet Credit column, not subtracted from the Income Statement Credit column and the Balance Sheet Debit column.
b. The net income of $17,700 should be added to the Income Statement Debit column and the Balance Sheet Credit column, not subtracted.
c. The $17,700 is actually a net loss, not net income.
d. There are no errors to report to Farmer Mac.
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley