Section 2- One Problem (Financial Statements)-The following balance sheet contains errors. Mark Brock Services Co. Balance Sheet For the Year Ended December 31 Assets Current assets: Liabilities Current liabilities: Accounts receivable Cash $ 10,000 7,170 Accounts payable 7,500 12,525 Supplies 2,590 Accumulated depreciation building Accumulated depreciation equipment Net income 7,340 800 11.500 Prepaid insurance Land 24.000 Total liabilities $ 41,365 Total current assets S 42,060 Owner's Equity Property, plant, and equipment: Building Wages payable Brock Morton, capital $ 1,500 88,645 $43,70 0 Equipment Total owner's equity 90.145 29.250 Total property, plant, and equipment 72.950 Total assets $131.510 $131.510 Total liabilities and owner's equity Requirements: (a) List the errors in the balance sheet above? (b) Prepare a corrected balance sheet? ANSWER (a): The errors in the balance sheet are: 1. 2. 3. 4. 5 6. 7. 8. Answer: (b) A corrected balance sheet would be as follows: Mark Brock Services Co. Balance Sheet December 31