After preparing the trial balance, the accountant of Xing Trading prepared the financial statements for the year ended 31 December 20X4. The following errors were discovered. Y Cheque of $950 was withdrawn by the owner for personal use. This has not been recorded in the books. 2 Credit sale of $1,460 has been recorded as $1,640. Office equipment maintenance fees of $620 have been recorded in the office equipment account. Credit note of $480 issued to a customer has been recorded in the debit column of the trade receivable account and the credit column of the sales returns account. 4 The profit for the year before discovering the errors was $26,520. The capital account had a balance of $63,725 before the profit for the year was transferred. (s) (a) State the effect of each error on profit for the year. (b) Prepare a statement to show adjusted profit for the year ended 31 December 20X4. c) Calculate owner's equity as at 31 December 20X4, after the errors are corrected.

After preparing the trial balance, the accountant of Xing Trading prepared the financial statements for the year ended 31 December 20X4. The following errors were discovered. Y Cheque of $950 was withdrawn by the owner for personal use. This has not been recorded in the books. 2 Credit sale of $1,460 has been recorded as $1,640. Office equipment maintenance fees of $620 have been recorded in the office equipment account. Credit note of $480 issued to a customer has been recorded in the debit column of the trade receivable account and the credit column of the sales returns account. 4 The profit for the year before discovering the errors was $26,520. The capital account had a balance of $63,725 before the profit for the year was transferred. (s) (a) State the effect of each error on profit for the year. (b) Prepare a statement to show adjusted profit for the year ended 31 December 20X4. c) Calculate owner's equity as at 31 December 20X4, after the errors are corrected.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 17MC: Which of the following is typically required for entry-level positions in the accounting profession?...

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