=+EX 4-12 Balance sheet obj. 2

✔ Total assets:

$187,500

✔

a. Net income:

$1,251 Chapter 4 Completing the Accounting Cycle 181 List the errors you find in the following balance sheet. Prepare a corrected balance sheet.

Cabana Services Co.

Balance Sheet For the Year Ended August 31, 2010 Assets Liabilities Current assets: Current liabilities:

Cash $ 15,840 Accounts receivable $ 41,250 Accounts payable 20,370 Accum. depr.—building 260,100 Supplies 4,950 Accum. depr.—equipment 55,440 Prepaid insurance 14,400 Net income 75,000 __________ Land 180,000 Total liabilities $431,790 __________ Total current assets $235,560 Property, plant, and equipment: Owner’s Equity Building $470,100 Wages payable $ 4,020 Equipment 129,000 Hector Delgado, capital 515,610 __________ __________ Total property, plant, Total owner’s equity 519,630 __________ and equipment 715,860 Total liabilities and __________ Total assets $951,420 owner’s equity $951,420 __________ __________ __________ __________