Acc225 Fundamental Accounting Principles: P4-5B The following unadjusted trial balance is for Crush

Acc225 Fundamental Accounting Principles 
P4-5B 
The following unadjusted trial balance is for Crush Demolition Company as of the end of its April 30, 2005, fiscal year. The April 30, 2004, credit balance of the owner’s capital account was $36,900, and the owner invested $30,000 cash in the company during the 2005 fiscal year. 

Instructions: 
1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance and including adjustments based on these additional facts: 
2. Use the work sheet to enter the adjusting and closing entries; then journalize them. 
3. Prepare the income statement and the statement of owner’s equity for the year ended April 30, and the classified balance sheet at April 30, 2005. 
Analysis Component: 
4. Analyze the following separate errors and describe how each would affect the 10-column work sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if not, the effect of the error on the financial statements. 
a. Assume the adjustment for expiration of the insurance coverage consisted of a credit to Prepaid Insurance for $3,100 and a debit for $3,100 to Insurance Expense. 
b. When the adjusted trial balance in the work sheet is completed, the $6,700 Repairs Expense account balance is extended to the Debit column of the balance sheet columns.
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