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Scott, MIT Graduate
Category: Homework
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Experience:  MIT Graduate (Math, Programming, Science, and Music)
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You have accepted a job as the controller of a start-up company a

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<p>You have accepted a job as the controller of a start-up company–a consulting firm, called Sheila Shaw Consulting. Sheila is an excellent consultant, but not a good accountant. She has attempted to prepare the first month’s financial statements, however, the statements do not balance. Her financial statements are a good starting point, but your job is to correct the errors. The statements are presented here. </p><p>SHEILA SHAW CONSULTING Balance Sheet August 31, 2007</p><p>                   Assets                                        Liabilities </p><p>Current assets:                                         Current liabilities: </p><p>Cash $ 21,300                                          Accounts payable $ 1,250 </p><p>Accounts receivable 3,800                            Prepaid rent 2,050 </p><p>Supplies 875                                                 Unearned fees 1,150 </p><p>Salaries payable 150                                     Total liabilities $ 4,450 </p><p>Prepaid insurance 1,670                                   </p><p>Total current assets $ 27,795                           </p><p> Property, plant, and equipment:                        Owner’s Equity</p><p> Office equipment $ 21,250                         Sheila Shaw, capital 47,720</p><p> Less accum. depr. 675                                 </p><p>Total Property, plant, and equipment 20,575        </p><p>                                                                         Total liabilities</p><p> and Total assets $ 48,370                                   owner’s equity $ 52,170</p><p> </p><p> Sheila is grateful to have you on board as her controller, and you are eager to make a good impression on her by finding the errors in her statements. Download Sheila’s statements and make the changes to them. All the information you need to find the errors is contained in these statements. Hint: There are 2 errors in the Balance Sheet, 1 error in the Income Statement, 1 error in the Statement of Owner’s Equity, and 2 errors in the Statement of Cash Flows. You will want to keep in mind all that you have learned in terms of the items on financial statements which are duplicated and flow from one statement to another. Assignment Checklist: 1. Report 2 balance sheet errors 2. Produces 1 statement of owner’s equity errors 3. Report 2 errors on the statement of cash 4. Prepare corrected financial statements</p>
Submitted: 6 years ago.
Category: Homework
Expert:  Leena0414 replied 6 years ago.

Hi, and thank you for using Just Answer. I'd be glad to help you with your question. Can you please upload the financial statements?


Look forward to assisting you!

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