Introductions

List the errors you find in the following balance sheet.

Labyrinth Services Co.

Balance Sheet

For the Year Ended August 31, 2016

1	Assets
2	Current assets:
3	Cash	$18,500.00
4	Accounts payable	31,300.00
5	Supplies	6,500.00
6	Prepaid insurance	16,600.00
7	Land	225,000.00
8	Total current assets		$297,900.00
9	Property, plant, and equipment:
10	Building	$400,000.00
11	Equipment	97,000.00
12	Total property, plant, and equipment		635,400.00
13	Total assets		$933,300.00
14	Liabilities
15	Current liabilities:
16	Accounts receivable	$41,400.00
17	Accum. depr.building	155,000.00
18	Accum. depr.equipment	25,000.00
19	Net income	118,200.00
20	Total liabilities		$339,600.00
21	Owners equity
22	Wages payable	$6,500.00
23	Ruben Daniel, capital	587,200.00
24	Total owners equity		593,700.00
25	Total liabilities and owners equity		$933,300.00

Prepare a corrected balance sheet. Fixed assets must be entered in order according to account number. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Labels

August 31, 2016

Current assets

Current liabilities

Expenses

Property, plant, and equipment

Revenues

Amount Descriptions

Accumulated depreciation

Decrease in owners equity

Increase in owners equity

Net income

Net loss

Ruben Daniel, capital

Ruben Daniel, capital, August 1, 2015

Ruben Daniel, capital, August 31, 2016

Total assets

Total current assets

Total expenses

Total liabilities

Total liabilities and owners equity

Total property, plant, and equipment

Withdrawals

Prepare a corrected balance sheet. Fixed assets must be entered in order according to account number. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Labyrinth Services Co.

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16	Liabilities
17
18
19
20
21	Owners equity
22
23