Question

1. Balance Sheet

   Below is the balance sheet for Labyrinth Services Co., which contains errors.

   Labyrinth Services Co.
   Balance Sheet
   For the Year Ended August 31, 20Y3
   Assets
   Current assets:
   Cash	$21,500
   Accounts payable	31,300
   Supplies	9,800
   Prepaid insurance	17,400
   Land	233,500
   Total current assets		$313,500
   Property, plant, and equipment:
   Building	$488,800
   Equipment	110,600
   Total property, plant, and equipment		813,400
   Total assets		$1,126,900
   Liabilities
   Current liabilities:
   Accounts receivable	$48,800
   Accumulated depreciation—building	201,300
   Accumulated depreciation—equipment	32,700
   Net income	179,000
   Total liabilities		$461,800
   Stockholders' Equity
   Wages payable	$3,500
   Common stock	150,000
   Retained earnings	511,600
   Total stockholders' equity		665,100
   Total liabilities and stockholders' equity		$1,126,900

   Prepare a corrected balance sheet.

   Labyrinth Services Co.
   Balance Sheet
   August 31, 20Y3
   Assets
   Current assets:
   		$
   Total current assets			$
   Property, plant, and equipment:
   		$
   	$
   	$
   Total property, plant, and equipment
   Total assets			$
   Liabilities
   Current liabilities:
   		$
   Total liabilities			$
   Stockholders' Equity
   		$
   Total stockholders' equity
   Total liabilities and stockholders' equity			$

Answer 1

Solution:
	BALANCE SHEET
	ASSETS		AMOUNT	AMOUNT
	CURRENT ASSETS:
	Cash		$               21,500
	Account Receivable		$               48,800
	Supplies		$                 9,800
	Prepaid Insurance		$               17,400
	Total Current Assets			$                97,500
	FIXED ASSETS:
	Land		$            233,500
	Building	$           488,800
	Accumulated Depreciation - Building	$           201,300	$            287,500
	Equipment	$           110,600
	Accumulated Depreciation - Equipment	$              32,700	$               77,900
	Total Property , Plant and Equipment
	Total Of Fixed Assets			$              598,900
	TOTAL OF ASSETS			$              696,400
	LIABILITIES & SHAREHOLDER'S EQUITY		AMOUNT	AMOUNT
	CURRENT LIABILITIES:
	Account Payable		$               31,300
	Wages Payable		$                 3,500
	Total of Currnet Liabilities			$                34,800
	Total Liabilities			$                34,800
	Shareholder's Equity
	Common Stock		$            150,000
	Retained Earnings		$            511,600
	Total Shareholder's Equity			$              661,600
	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY			$              696,400