Posted by Bonnie on .
Analyze the following separate errors and describe how each would affect the 10-column work
sheet Below. Explain whether the error is likely to be discovered in completing the work sheet and, if
not, the effect of the error on the financial statements.
a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and
a debit for $3,200 to Supplies Expense.
b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is
incorrectly entered in the Credit column.
Balance sheet as of June 30, 2005
NON CURRENT ASSET
Property, plant equiptment $97, 250
Prepaid insurance $2,300
Total Assets $120,250
LIABILITIES AND EQUITY
LONG TERM LIABILITY
Long term notes payable $19,000
Accounts payable $6,350
Interest payable $240
Rent payable $200
Wages payable $1,600
Property taxes payable $900
Long term notes payable (current portion) $5,000
Total Liabilities $33,290
S.Adams capital $77,600
S. Adams withdrawls ($30,000)
Net Income $39,300
Total Liabilities and Owners Equity $120,250