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

$$\begin{array}{lrlr} \text { Accounts Payable } & \$ 18,500 & \text { Prepaid Insurance } & \$ 19,200 \\ \text { Accounts Receivable } & 78,250 & \text { Prepaid Rent } & 18,000 \\ \text { Accumulated Depreciation-Equipment } & 103,300 & \text { Retained Earnings } & 509,000 \\ \text { Capital Stock } & 100,000 & \text { Salaries Payable } & 8,500 \\ \text { Cash } & ? & \text { Supplies } & 5,350 \\ \text { Equipment } & 300,000 & \text { Unearned Fees } & 9,000 \\ \text { Land } & 290,000 & & \end{array}$$

For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement).

F. Insurance Expense

For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement).

B. Accounts Receivable

From the following Company R adjusted trial balance, prepare the following:

B. Retained Earnings Statement

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}44,000}\\ \text{Accounts Receivable}&\text{\hspace{10pt}13,800}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,400}\\ \text{Land}&\text{\hspace{10pt}16,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,900}\\ \text{Salaries Payable}&&\text{\hspace{15pt}4,500}\\ \text{Common Stock}&&\text{\hspace{10pt}31,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}10,200}\\ \text{Dividends}&\text{\hspace{10pt}12,000}\\ \text{Service Revenue}&&\text{\hspace{10pt}86,000}\\ \text{Insurance Expense}&\text{\hspace{15pt}7,600}\\ \text{Salaries Expense}&\text{\hspace{10pt}32,000}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{10pt}14,800}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}146,600}}}&\underline{\underline{\text{\$\hspace{1pt}146,600}}}\\ \end{array}$$

The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2014:

c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?

The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2014:

a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2014, using the periodic inventory system.

The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2014:

b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2014.

Use the following T-accounts to prepare the four journal entries required to close the books:

The following accounts and normal balances existed at year-end. Make the four journal entries required to close the books:

Advertising expense    $ 5,600
Dividends                4,000
Rent expense             6,000
Salaries expense        48,000
Service revenue         85,000
Utilities expense        7,500

Use the following Adjusted Trial Balance to prepare the four journal entries required to close the books:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}75,500}\\ \text{Accounts Receivable}&\text{\hspace{10pt}15,500}\\ \text{Accounts Payable}&&\text{\$\hspace{10pt}4,000}\\ \text{Unearned Revenue}&&\text{\hspace{15pt}6,000}\\ \text{Common Stock}&&\text{\hspace{10pt}20,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}12,500}\\ \text{Dividends}&\text{\hspace{10pt}30,000}\\ \text{Service Revenue}&&\text{\hspace{5pt}355,000}\\ \text{Advertising Expense}&\text{\hspace{10pt}30,000}\\ \text{Rent Expense}&\text{\hspace{10pt}36,000}\\ \text{Utilities Expense}&\text{\hspace{15pt}9,500}\\ \text{Wages Expense}&\underline{\text{\hspace{5pt}201,000}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}397,500}}}&\underline{\underline{\text{\$\hspace{1pt}397,500}}}\\ \end{array}$$

The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books:

Accounts receivable            $33,200
Prepaid insurance                6,000
Land                            48,000
Accounts payable                27,050
Notes payable                   65,800
Retained earnings                9,350
Dividends                        2,200
Fees earned revenue             70,500
Selling expenses                41,770
Administrative expenses         22,400
Miscellaneous expense            1,835

Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2018, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows:

$$\begin{array}{lrlr} \text{Accounts Payable}&\$\hspace{10pt}\text{51,200}&\text{Prepaid Insurance}&\$\hspace{15pt}\text{8,400}\\ \text{Accounts Receivable}&\text{187,500}&\text{Prepaid Rent}&\text{6,000}\\ \text{Accumulated Depreciation - Equipment}&\text{186,000}&\text{Retained Earnings}&\text{620,300}\\ \text{Cash}&\text{?}&\text{Salaries Payable}&\text{7,500}\\ \text{Common Stock}&\text{100,000}&\text{Supplies}&\text{11,200}\\ \text{Equipment}&\text{325,900}&\text{Unearned Fees}&\text{21,000}\\ \text{Land}&\text{375,000}\\ \end{array}$$

Prepare a classified balance sheet that includes the correct balance for Cash.

At the balance sheet date, a business owes a mortgage note payable of $375,000, the terms of which provide for monthly payments of$1,250.

Explain how the liability should be classified on the balance sheet.

Is noncurrent assets a fixed asset?