Question

Below is the balance sheet for Labyrinth Services Co., which contains errors. Labyrinth Services Co. Balance Sheet For the Year Ended August 31, 2018 Assets Current assets: $16,500 28,200 7,500 13,500 215,000 $280,700 $449,700 101,700 731,100 $1,011,800 Cash Accounts payable Supplies Prepaid insurance Land Total current assets Property, plant, and equipment: Building Equipment Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts receivable Accumulated depreciation-building Accumulated depreciation-equipment Net income Total liabilities Stockholders' Equity Wages payable Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $37,600 185,200 30,100 160,900 $413,800 $3,100 150,000 444,900 598,000 $1,011,800 Prepare a corrected balance sheet.

Answer 1

Labyrinth Services Co. Balance Sheet August 31, 2018
Assets
Current assets:
Cash		$ 16,500
Supplies		$ 7,500
Prepaid insurance		$ 13,500
Accounts receivable		$ 37,600
Total Current assets			$ 75,100
Property, plant, and equipment:
Land		$ 215,000
Building	$ 449,700
Less: Accumulated depreciation - Building	($ 185,200)
Building - Net		$ 264,500
Equipment	$ 101,700
Less: Accumulated depreciation -Equipment	($ 30,100)
Equipment - Net		$ 71,600
Total Property, plant and equipment			$ 551,100
Total assets			$ 626,200
Liabilities
Current liabilities:
Accounts payable		$ 28,200
Wages payable		$ 3,100
Total liabilities			$ 31,300
Stockholders' Equity
Common stock		$ 150,000
Retained earnings		$ 444,900
Total Stockholders' equity			$ 594,900
Total Liabilities and stockholders' Equity			$ 626,200