exam 6 5 questions answered notes

In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record: 1. $3,200 of insurance coverage that had expired (this $3,200 cost had been initially debited to the Prepaid Insurance account). 2. $2,000 of accrued salaries expense. As a result of these two oversights, the financial statements for the reporting period will [choose one]: a. Understate assets by $3,200. c. Understate net income by $2,000. b. Understate expenses by $5,200. d. Overstate liabilities by $2,000.

Which of the following is NOT an accounting method that would increase the current ratio (currently 2:1)?   a. Not adjusting prepaid insurance at year end b.   Recognising unearned revenue as revenue   c. Not recognising accrued wages d.   Changing the method of depreciation

PLEASE DON'T USE AI / CHAT GPT In the blank to the left of each statement, fill in the letter from the following list which best describes the treatment of the item on the financial statements of Sora Inc. for the current year ending December 31, 2017: A) Change in estimate B) Correction of error C) None of the above D) Change in accounting policy requiring retrospective application 1. In 2017, the company changed its method of recognizing income from the completed-contract method to the percentage-of-completion method. 2. At the end of 2017, an audit revealed that the corporation's allowance for doubtful accounts was too large and should be reduced to 2%. When the audit was performed in 2016, the allowance seemed appropriate. 3. Depreciation on a truck, acquired in 2013, was understated because the service life had been overestimated. The understatement had been made in order to show higher net income in 2014 and 2015. 4. The company switched from average cost to FIFO inventory…

High company, your client, failed to record accrued salaries expense of 50,000 as of December 31, 2022Based on the foregoing, answer the following questions:1.) Which of the following accounts is(are) understated by 50,000 at the end of year 2022 as a result of the error? 2.) Which of the following accounts is(are) overstated by 50,000 at the end of year 2023 as a result of the error? 3.) What would be the adjusting entry if the error is discovered in year 2022? 4.) What would be the adjusting entry if the error is discovered in year 2023? 5.) What would be the adjusting entry if the error is discovered in year 2024?

When preparing adjusting entries at December 31, 2022, DC Co. discovered that sales salaries of $65,000 had not been accrued at December 31 2021.  If the error is not corrected, what is the effect on the 2021 and 2022 comparative financial statements?   Question 11Answer a.   Salaries and Wages Expense and total liabilities are understated in 2021.  Salaries and Wages Expense and total liabilities are overstated in 2022. Retained Earnings is understated in 2021 and overstated in 2022.   b.   Salaries and Wages Expense is overstated in 2021 and understated in 2022.  Retained Earnings is overstated and total liabilities are understated in 2021 but properly stated in 2022.   c.   Salaries and Wages Expense is understated in 2021 and overstated in 2022.  Retained Earnings is overstated and total liabilities are understated in 2021 but properly stated in 2022.   d.   Salaries and Wages Expense and total liabilities are understated in 2021.  Salaries and Wages Expense…

The accountant of Reliable​ Consulting, Inc. failed to make an adjusting entry to record​ $6,000 for unearned service revenues that were earned before the end of the fiscal year. Assume the company initially recorded a liability. Which of the following statements is​ true?         A. The total liabilities will be overstated.   B. The total liabilities will be understated.   C. The total assets will be overstated.   D. The total assets will be understated.

Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting entry if the error was discovered at December 31, 2022? a. Debit - Retained Earnings, P 120,000; Credit - Unearned Sales Revenue, P 120,000. b. Debit - Retained Earnings, P 120,000; Credit - Sales Revenue, P 120,000. c. No adjusting entry is necessary d. Debit - Sales Revenue, P 120,000; Credit - Retained Earnings, P 120,000.

Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting entry if the error was discovered at December 31, 2022? Group of answer choices A. Debit - Retained Earnings, P 120,000; Credit - Unearned Sales Revenue, P 120,000. B. Debit - Sales Revenue, P 120,000; Credit - Retained Earnings, P 120,000. C. No adjusting entry is necessary D. Debit - Retained Earnings, P 120,000; Credit - Sales Revenue, P 120,000.

Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had incorrectly recorded in 2018 a cash payment of $70,000 for utilities expense. The correct amount of the utilities expense was $35,000. Requirements Determine the effect of the error on the accounting equation in 2018. How should this error be reported in the 2019 financial statements?

The books of Hope Enterprises showed the following adjusting entries at the end of the period: * Depreciation expense 5,000 Accumulated depreciation Bad debts expense 1,000 Allowance for bad debts Unearned rent income Rent income Utilities expense 3,000 4,000 Accrued utilities expense 5,000 1,000 3,000 4,000 How much is the total amount for reversal at the start of the next fiscal year relating to these adjusting entries? (The reversing entry/ies serve/s as the solution for this problem)

Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had incorrectly recorded in 2018 a cash payment of $70,000 for utility expense. The correct amount of the utility expense was $35,000. Requirements Determine the effect of the error on the accounting equation in 2018. How should this error be reported in the 2019 financial statements?

During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…