Instructions:        1. Review the Income Statement, Statement of Changes in Equity, and Statement of Financial Position above.        2. Identify at least 10 errors in the financial statements.        3. For each error found, describe what is wrong and provide the correct treatment or amount.        4. Errors may include: calculation mistakes, classification errors, presentation errors, or conceptual errors.        5. Each correctly identified and explained error is worth 2 marks (20 marks total for 10 errors).        

At January 1, 2026, Momentum Fitness Inc. reported Retained Earnings of $2,900,000. During 2026, the company earned net income of $2,750,000. What is the December 31, 2026 balance in Retained Earnings?

Using the units-of-production method, how much depreciation expense should be recorded in 2021?

At January 1, 2026, Momentum Fitness Inc. reported a Common Shares balance of $300,000. What is the December 31, 2026 balance in Common Shares?

Using the units-of-production method, how much depreciation expense should be recorded in 2025?

On November 20, 2026, Momentum Fitness Inc. paid the dividends declared on November 10. Which journal entry should Momentum Fitness Inc. record?

Using the double-declining-balance method, what depreciation rate should be used?

6. In the equation, predicted Y = b(X) + a, the symbol b represents

October 5: The company provided consulting services on account for $9,500. Which journal entry should be recorded?

When Peak Performance Studio received the loan on March 31, 2025, what amount should be credited to Bank Loan Payable?