Reference no: EM131771933

Question - Find the errors in the following balance sheet items (if they exist) for a theater company:

1. Cash listed as $19,400 as they have $16,000 in the company's bank account, $2,400 on hand in the company's safe, and $1,000 in the owner's personal savings account.

2. $10,000 owed to the business by Dell listed as accounts receivable. $140,200 estimated future profits through the end of the year listed as accounts receivable.

3. Props and costumes purchased for $18,000 several days ago. The business paid $3,000 of this in cash and issued a notes payable for the remainder ($15,000), but the company listed the props and costumes as an asset at $3,000.

4. The owner rents the building and listed the building as an asset at $26,000, the amount he has paid up to this date in the year.

5. Accounts payable ($7,000) includes business debts of $6,000 and the $1,000 balance on the owner's personal credit card.