Question

Labyrinth Services Co.

Balance Sheet

For the Year Ended August 31, 2019

1	Assets
2	Current assets:
3	Cash	$18,800.00
4	Accounts payable	32,500.00
5	Supplies	4,800.00
6	Prepaid insurance	16,500.00
7	Land	188,800.00
8	Total current assets		$261,400.00
9	Property, plant, and equipment:
10	Building	$440,000.00
11	Equipment	95,000.00
12	Total property, plant, and equipment		671,400.00
13	Total assets		$932,800.00
14	Liabilities
15	Current liabilities:
16	Accounts receivable	$41,800.00
17	Accumulated depreciation-building	153,000.00
18	Accumulated depreciation-equipment	26,100.00
19	Net income	117,800.00
20	Total liabilities		$338,700.00
21	Owner’s equity
22	Wages payable	$7,000.00
23	Ruben Daniel, capital	587,100.00
24	Total owner’s equity		594,100.00
25	Total liabilities and owner’s equity		$932,800.00

Q: Prepare a corrected balance sheet. List Property, plant, and equipment in the order of Land, Building & Equipment. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Be sure to complete the statement heading.

Answer 1

	Labyrinth Services Co.
	Balance Sheet
	August 31, 2019
1	Assets
2	Current assets
3	Cash		$18,800
4	Accounts receivable		$41,800
5	Supplies		$4,800
6	Prepaid insurance		$16,500
7	Total current assets			$81,900
8	Property, plant, and equipment
9	Land		$188,800
10	Building	$440,000
11	Accumulated depreciation-building	$153,000	$287,000
12	Equipment	$95,000
13	Accumulated depreciation-equipment	$26,100	$68,900
14	Total property, plant, and equipment			$544,700
15	Total assets			$626,600
16	Liabilities
17	Current liabilities:
18	Accounts payable		$32,500
19	Wages payable		$7,000
20	Total liabilities			$39,500
21	Owner’s equity
22	Ruben Daniel, capital			$587,100
23	Total liabilities and owner’s equity			$626,600