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. 6,500 6.500 2.500 2.500 400 400 400 400 1.250 1.250 870 Journal Entries: a) Cash Dana Bowen. Capital b) Fouipment Dana Bowen. Capital c) Rent Expense Cash d) Cash Fees Earned el Accounts Receivable Fees Eamed Supplies Accounts Pavable e) Wages Expense Cash h) Prenaid Insurance Cach i) Cash Fers Fame i) Miscellanen France Cash k Dana Rown Dewing Cach 1) Cash Uneamed Revenue Adjusting Entries: 870 420 420 1.940 1 940 7500 2500 50 SO 350 350 930 930 540 540 BRS BRS 725 m) Supplies Expense Sunnies nl Account Recrivable Fers Famid Innen Femenin Prenaid Insuran nl Acumulated Decision Denreistinn Funens nl Waor Renens Waece Pavahin neamed Revue Fare Famer 725 180 12 725 305 500 son Cash Accounts Receivabl Prepaid Insuranc Supplies 870 6,50 1,25 1,94 400 385 540 725 400 420 1.94 2,50 50 350 930 Accumulate d Depreciation Equipment Accounts Payable 870 Wages Romblo 2,500 130 225 Unearn ed Dana Bowen, Dana Bowen, 350 Income Summary TT 930 590 6,50 2,50 Fees Earned Rent Expense 400 Supplies Expense Wages 420 225 900 540 1,25 2,50 385 590 Insuran Depreciatio n Expense Miscellanco us 725 130 SO Dana Bowen Company End-of-Period Spreadsheet For the Year Ended April 30 Trial Balance Adjustments Debit Credit Debit Credit Adjusted Trial Balance Debit Credit 7,170 2,500 1.215 Cash 7.170 385 1,250 1,940 725 870 540 330 2,500 2,500 130 310 930590 340 870 870 225 225 Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation Unearned Revenue Accounts Payable Wages Payable Dana Bowen, Capital Dana Bowen, Drawing Fees Eamed Wage Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense Totals 9,000 9,000 350 350 2,900 2,725 5,620 400 225 645 400 400 540 540 725 725 130 130 5 50 50 15,930 13,700 2,595 4,345 16,895 16,025 Dana Bowen Company Income Statement For the Year Ended April 30 Fees earned $5,625 $725 645 540 Expenses: Insurance expense Wages expense Supplies expense Rent expense Depreciation expense Miscellaneous expense Total expenses 400 130 50 _2,490 $3.135 Net income Dana Bowen Company Statement of Owner's Equity For the Year Ended April 30 Dana Bowen capital, May 1 WO 0 Investment $ 9,000 3.135 Net income for the period Less withdrawals Total change in owner's equity Dana Bowen, capital, April 30 (350) 11.785 $11.785 Dana Bowen Company Balance Sheet April 30 Assets Liabilities Current liabilities: Current assets Cash $7,170 Accounts payable 870 225 Accounts receivable Supplies 1,635 330 Wages payable Unearned revenues 340 330 Prepaid insurance 1.215 Supplies $10,850 Total liabilities $ 1,435 Total current assets Property, plant, & equipment: Equipment Less accumulated depe $2,500 130 2.630 Owner's Equity Dana Bowen, capital Total liabilities and owner's equity 9,000 Total assets S13.200 510435 Closing Entries: 5,62 5625 7.40 $) Fees Earned Income Summer Income Summary Wons Funenen Rent Finner Sunplies Pennen Indian France Deristian Finn Miscellaneous Exnense m) Income Summary Dann Rowen Cantal v Dans Rowen Drawing Dana Bowen, Drawing 645 400 540 725 130 50 112 1135 3 350 Dana Bowen Company Post-Closing Trial Balance April 30 Cash 7,170 2,500 1,215 330 2,500 310 Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation Uncarned Revenues Accounts Payable Wages Payable Dana Bowen, Capital Total 340 870 225 11.785 13,530 13,715