The Following Balance Sheet Contains Errors

Question

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The Answer is (a)
(1)Date of statement should be "December 31" not "For the Year Ended December 31."
(2)Accounts payable should be a current liability.
(3)Land is a fixed asset and should be listed as property, plant, and equipment.
(4)Accumulated depreciation should be deducted from the related fixed asset in the property, plant, and equipment section.
(5)An adding error was made in determining the amount of total assets.
(6)Accounts receivable should be a current asset.
(7)Net income would be reported on the income statement.
(8)Wages payable should be a current liability.A corrected balance sheet would be as follows:

(a) (1)Date of statement should be December 31 not For the Year Ended December 31. (2)Accounts payable should be a current liability. (3)Land is a fixed asset and should be listed as property, plant, and equipment. (4)Accumulated depreciation should be deducted from the related fixed asset in the property, plant, and equipment section. (5)An adding error was made in determining the amount of total assets. (6)Accounts receivable should be a current asset. (7)Net income would be reported on the income statement. (8)Wages payable should be a current liability.A corrected balance sheet would be as follows:

The Following Balance Sheet Contains Errors

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