Exercise 2 Dana Bowen Company is a small business owned by Dana Bowen. She provided us with the documents for the year ended April 30, 2022. She is concerned that there are a number of errors in all documents made by her accountants Required: Determine what those errors are and correctly recalculate amounts in all documents. Journal Entries: a) Cash 6,500 Dana Bowen, Capital I 6,500 b) Equipment 2,500 Dana Bowen, Capital 2,500 c) Rent Expense 400 Cash 400 d) Cash 400 Fees Eamed 400 e) Accounts Receivable 1.250 Fees Earned 1.250 1) Supplies 870 Accounts Payable 870 g) Wages Expense 420 Cash 420 h) Prepaid Insurance 1.940 Cash 1.940 i) Cash 2,500 Fees Eamed 2.500 1) Miscellaneous Expense 50 Focus m ron 1,250 870 870 420 420 1,940 1.940 2,500 2,500 50 50 350 I 350 930 Fees Earned 1) Supplies Accounts Payable g) Wages Expense Cash h) Prepaid Insurance Cash i) Cash Fees Earned D) Miscellaneous Expense Cash k) Dana Bowen, Drawing Cash 1) Cash Unearned Revenue Adjusting Entries: m) Supplies Expense Supplies n) Accounts Receivable Fees Earned o) Insurance Expense Prepaid Insurance p) Accumulated Depreciation Depreciation Expense 4) Wages Expense Wages Payable r) Uneamed Revenues Fees Earned 930 540 540 385 385 725 725 130 130 225 225 590 590 On D Foc Dana Bowen Company Balance Sheet April 30 Assets Liabilities Current assets: Current liabilities: $7,170 1,635 330 1.215 $ 870 225 340 330 Cash Accounts receivable Supplies Prepaid insurance Total current assets Property, plant, & equipment: Equipment Less accumulated depr. Accounts payable Wages payable Unearned revenues Supplies Total liabilities $10,850 $ 1.435 $2,500 130 2.630 9,000 Owner's Equity Dana Bowen, capital Total liabilities and owner's equity Total assets $13.200 $10.435 Closing Entries: 5,625 5,625 2,490 s) Fees Earned Income Summary t) Income Summary Wages Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense u) Income Summary Dana Bowen, Capital v) Dana Bowen, Drawing Dana Bowen, Drawing 645 400 540 725 130 50 1,135 1,135 350 350 Dana Bowen Company Post-Closing Trial Balance April 30 Cash 7,170 Accounts Receivable 2,500 Prepaid Insurance 1.215 Supplies 330 Equipment 2,500 Accumulated Depreciation 310 Unearned Revenues 340 Accounts Payable 870 Wages Payable 225 11.785 Dana Bowen, Cipital Total 13,715 13,530