Questions
1. How can Alicia tell if something is wrong?
2. Is the list of adjusting and closing entries the correct one? Explain.
3. Does the list supplied have anything to do with Academy of Music?
Explain.
4. Give the most likely explanation for the error.
5. Work out the adjusting entries from the information that you have avail-
able. Start to prepare a new list of the correct adjusting and closing entries. You can do this by restructuring the worksheet, starting with the Balance Sheet and Income Statement columns and working backwards.
6. Work out the closing entries and complete a correct list of adjusting and closing entries.