Galaxy Realty, organized October 1, 2008, is owned and operated by Ora Tasker. How many errors can you find in the following financial statements for Galaxy Realty, prepared after its second month of operations?
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Galaxy Realty Income Statement November 30, 2008
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Sales commissions
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$103,800
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Expenses:
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Office salaries expense
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64,800
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Rent expense
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22,000
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Automobile expense
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5,000
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Miscellaneous expense
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1,600
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Supplies expense
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600
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Total expenses
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94,000
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Net income
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$29,800
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Ora Tasker Statement of Owner's Equity 30-Nov-07
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Ora Tasker, capital, November 1, 2008
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$20,800
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Less withdrawals during November
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4,000
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$16,800
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Additional investment during November
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5,000
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$21,800
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Net income for the month
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29,800
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Ora Tasker, capital, November 30, 2008
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$51,600
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Balance Sheet For the Month Ended November 30, 2008
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Assets
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Liabilities
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Cash
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$6,600
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Accounts receivable
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$28,600
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Accounts payable
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7,600
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Supplies
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4,000
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Owner's Equity
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Ora Tasker, capital
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51,600
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Total assets
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$14,200
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Total liabilities and owner's equity
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$84,200
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