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The Income Statement below was prepared by a student intern who did not think it was important to go to accounting class. She frequently missed
The Income Statement below was prepared by a student intern who did not think it was important to go to accounting class. She frequently missed class and never did homework. Identify five errors that were made and how they would be corrected. Do NOT prepare corrected statements. For example, you would say 1-"Expense Statement is not the correct name The correct name of this financial statement is the Income Statement. (this cannot be one of your five errors) Berkeley Playhouse Expense Statement For the year ended 12/31/20 Assets Service Revenue Intrest Income Unearned Revenue Accounts Receivable Total Less: Expenses Dividend expense Salary payable Accumulated depreciation Office expense $100,000 10,000 15.000 25.500 $350,000 $5,000 50,000 5,000 1.000 Net Income $300.000
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