CASE STUDY
PREPARE THE CORRECT STATEMENT OF FINANCIAL POSITION
The bookkeeper of A Service prepared the statement of financial position of the company while the accountant was ill. The statement of financial position contains numerous errors. In particular, the bookkeeper knew that the statement of financial position should balance, so he plugged in the owner’s equity amount to achieve this balance. The owner’s equity amount, however, is not correct. All other amounts are accurate, but some are out of place.
A SERVICE
Statement of Financial Position
Month Ended October 31, 2013
ASSETS
LIABILITIES