Costa Company

Topic: Costa Company

Subject area:  Accounting

Number of pages: 3

Writing style: APA

Type of document: Coursework

Academic level: Undergraduate

Number of sources/references: 3

Details: Your task is to prepare an income statement and a balance sheet in good format after adjusting for the two errors below.
A physical count of inventory indicates $70,500 on hand.
There’s a check for $5,000 from a customer that has not been recorded in the working trial balance. The sale was never recorded in the first place, so the transaction relating to this sale is missing.
In addition:
Describe the effect of the errors on the income statement and balance sheet.
Is this company profitable? How do you determine whether or not this is the case?
Is the company in a solid financial position? (Comment on balance sheet.)


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