EX 4-13 Balance sheet

List the errors you find in the following balance sheet. Prepare a corrected balance sheet.

Poshe Services Co.

Balance Sheet

For the Year Ended May 31, 2012

Current assets:

Current liabilities:

Cash

$14,000

Accounts receivable

$32,500

Accounts payable

24,000

Accum. depr.—building

155,000

Supplies

6,500

Accum. depr.—equipment

25,000

Prepaid insurance

12,000

Net income

135,000

Land

180,000

Total liabilities

$347,500

Total current assets

$236,500

Property, plant,

Owner’s Equity

and equipment:

Building

$375,000

Wages payable

$2,500

Equipment

85,000

Hector Delgado, capital

498,500

Total property, plant,

Total owner’s equity

501,000

and equipment

612,000

Total liabilities and

Total assets .

$848,500

owner’s equity

$848,500