=+116 Chapter 3 For the preceding items, (*) indicates that the item is current in nature, while (**) indicates that the item is long-term in nature.

Prepare a classified balance sheet as of April 29, 2006.

E3-31 Balance sheet Obj 4 List the errors you find in the following balance sheet. Prepare a corrected balance sheet.

CASA SERVICES CO.

Balance Sheet For the Year EndedJuly 31, 2008 Assets Current assets:

Cash $ 4,000 Accounts payable 9,300 Supplies 1,600 Prepaid insurance 4,800 Land 90,000 Total current assets $109,700 Property, plant, and equipment:

Building $ 75,000 Equipment 30,000 Total property, plant, and equipment 105,000 Total assets $214,700 Liabilities Current liabilities:

Accounts receivable $ 13,600 Accumulated depreciation—building 18,200 Accumulated depreciation—equipment 10,800 Net loss 7,500 Total liabilities $ 50,100 Stockholders’ Equity Wages payable $ 2,700 Capital stock 30,000 Retained earnings 148,000 Total stockholders’ equity 180,700 Total liabilities and stockholders’ equity $214,700 Problems