Answer 1&2 Belarus Company, your client, failed to record accrued rent income of P 25,000 as ofDecember 31, 2022.Based on the foregoing, answer the following questions:Question 1: Which of the following accounts is(are) understated by P 25,000 at theend of year 2022 as a result of the error? |[ Select ]V [ Select ]heQuestion 2: Which of the following accounAccrued Rent Receivable onlyend of year 2023 as a result of the error?None among the given choicesQuestion 3: What would be the adjusting eRent Income only2022? [Select]Both accrued rent receivableand rent incomeQuestion 4: What would be the adjusting e.2023? [Select]Question 5: What would be the adjusting entry if the error is discovered in year2024? Select] Belarus Company, your client, failed to record accrued rent income of P 25,000 as ofDecember 31, 2022.Based on the foregoing, answer the following questions:Question 1: Which of the following accounts is(are) understated by P 25,000 at theend of year 2022 as a result of the error?[ Select ]Question 2: Which of the following accounts is(are) overstated by P 25,000 at theend of year 2023 as a result of the error? [ Select ]V [ Select ]Question 3: What would be the adjustingNone among the given choices2022? [ Select]Both accrued rent receivableQuestion 4: What would be the adjustingand rent income2023? [Select]Accrued Rent Receivable onlyRent Income onlyQuestion 5: What would be the adjusting e2024? Select]

Accrued income: It implies to the income that has been earned by the business but has not been…

Answered: Answer 1&2

Business

Accounting

Answer 1&2

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 16E: Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and...

See similar textbooks

Related questions

Q: n January 1, 2016, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive ...

A: In this question, we have to find out the amount which should be recorded as a debit to lease receiv...

Q: (b) Sohan has been recently hired in Zio Life Limited. Since he is facing difficulty in computation ...

A: Basic earning per share=net profit for the year/number of equity shares outstanding or 46,00,000/30,...

Q: On October 1, 2020, Eastern Timber Inc. has available for issue $700,000 bonds due in four years. In...

A: Issue Price of Bond: On the maturity date of a bond, the bond will be paid off by the bond issuer, w...

Q: The AAA account for an S corporation can never be a negative number. True False

A: AAA Account : It is the accumulated adjustment account which is used by S corporation and which cont...

Q: 10.3 (LO 2), AN On January i, 2022, Evers Company purchased the following two machines for use in it...

A: The question is based on the concept of Depreciation Accounting. Depreciation is the reduction in th...

Q: Ignore first question and answer only 2

A: Lets understand the basics. For calculating revised net operating income per month, we need to use b...

Q: For each of the following separate situations, determine the amount of expense each company should r...

A: Formula: Monthly insurance expense = Total expense / Number of months in a year

Q: Q4. What is the meaning of: b. n/eom:

A: It is regular affair between the seller and buyer to provide credit terms in the settlement of the a...

Q: YG Company has 5,000 shares of 6%, USD100 par value, noncumulative preferred stock and 20,000 shares...

A: It is pertinent to note that preference shares have hybrid characteristics of both debt and equity. ...

Q: Inc. owns these assets at the statement of financial position date: pank (savings account) $20,240 h...

A: Prepaid Insurance is insurance expenses which have been paid in advance . It is an current asset . P...

Q: 6. Table values are Present value of 1 for 8 periods at 6% . .627 Present value of 1 for 8 periods a...

A: Price of bond is sum of the present value of annual interest payment and present value of the par va...

Q: Required: Using the amortization schedule provided above, record the entry to retire the bonds on Oc...

A: If bonds are retired before maturity, there may be gain or loss on retirement. If the bond is retire...

Q: On November 10, 2020, Singh Electronics began to buy and resell scanners for $60 each. Singh uses th...

A: Warranty expense is the cost that the business estimates for repair or replacement of goods sold.

Q: nd is not a user of the fund but a surplus unit, what do you think is the most suitable money market...

A: In Philippines there are different type of money market fund which are available for the investment ...

Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. While...

A: A beta of one indicates that the price of the security moves in lockstep with the market. A beta gre...

Q: Paid the treasurer of the union the amount of union dues withheld from workers' earnings during Marc...

A: Payroll Payroll is considered to be one of the important function in the business entity and to time...

Q: Sheridan Inc. owns these assets at the statement of financial position date: Cash in bank (savings a...

A: Cash and cash equivalents refers to most liquid current assets of the business and also includes sho...

Q: What is the difference betweena balance sheet and an incomestatement?

A: The financial statements of the business includes the income statement, balance sheet and cash flow ...

Q: using legend + (if increased), - (if decreased), or X (if no effect). 1. Acquisition of land on acco...

A: The four main accounts that affect the owner's equity are revenues, gains, losses and expenses. When...

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...

A: Variable costs are costs that change with each level of output while fixed costs do not change with ...

Q: What is the value of each preference share using the zero-growth model? 2. What is the importance of...

A: Value of Preference Share: - It is also called the fair value of Preference Share. It is computer to...

Q: The partners in the Majesty partnership have agreed that partner Prince may sell his $150,000 equity...

A: Partnership is considered as an agreement between two or more partners, where partners are comes tog...

Q: Problem 8: Amicable Company purchased a machine at a cost of P635, 000 on January 1, 2012. It was ...

Q: Discuss the different components of the Financial System and its importance

A: I am answering the first question out of the two submitted questions as per bartleby guidelines. Ple...

Q: In 2018, A Corporation allowed its Sales Manager to incur expenses subject to reimbursement, as foll...

A: Some of the most common examples of fringe benefits are health insurance, workers' compensation, ret...

Q: Sweet Company purchased equipment on January 1, 2018, for S28,000. Suppose Sweet Company sold the eq...

A: recording of journal entry for depreciation are as follows.

Q: Service revenue (from camping fees) $171,600 Dividends $11,700 Sales revenue (from general store) 32...

A: Formula: Net Income = Total revenues - Total expenses

Q: 9. Statement 1: Equity investments at FVPL are assessed for impairment. Statement 2: Dividends are r...

A: An impaired asset is one that has a market value that is lower than the value indicated on the compa...

Q: Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, th...

A: Generally the fixed assets are valued at cost plus cost of...

Q: The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute ...

A: The question is based on the cost accounting.

Q: Question 31 (? During 2021, NorthHill Services has revenues of $58.000, expenses other than income t...

A: " Since you have asked multiple question,we will solve the first question for you.If you want any sp...

Q: High company, your client, failed to record accrued salaries expense of 50,000 as of December 31, 20...

A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for yo...

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...

A: Manufacturing cost means the cost incurred to produce the finished goods in factory. Fixed manufactu...

Q: Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, ...

A: Gross method is an Method where Sales are recorded in Full value including the discount amount which...

Q: 1. Statement 1: A split up increases the number of shares held and decreases the cost per share. Sta...

A: The stock split is defined as the process wherein any company divides its total number of shares out...

Q: Briefly discuss double taxation

A: Taxes are the amount of obligations that needs to be paid by the individual to the government. Taxes...

Q: Ocean Adventures issues bonds due in 10 years with a stated interest rate of 6% and a face value of ...

A: Issue price of bond is the present value of future cash inflows PV = PV of face value + PV of intere...

Q: 17. Complete the following balance sheet. Cash $30,000 Accounts Receivable $2,000 Inventory $5,000 F...

A: Assets = Total liabilities + Stockholders equity Current assets = Cash + Accounts receivables + Inve...

Q: Ali received an invoice dated 21 March 2021 worth RM 450,000 for 100 units of laptops. The invoice w...

A: Accounting payment terms seem to be the payment policies that providers place on their consumers. Pa...

Q: The problem to be resolved: The following trial balance was extracted from the books of Movies To T...

A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...

Q: Information asymmetry vs Information Symmetry: What is addressed in Financial Markets? IV. Savers an...

A: Financial market is the market which does not now onwards any more physical existence just because o...

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years a...

A: Assets held for sale are recorded at lower of carring amount in books and fair value less cost of sa...

Q: In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new generat...

A: In manufacturing industries, the most commonly used fixed asset are the machineries. The acquisition...

Q: Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1....

A: Financial Statement - Financial Statements of the company includes - 1. Income Statement 2. Statemen...

Q: 4. Statement 1: In the sale of a financial asset measured at fair value through OCI, the difference ...

A: Note Recognition of Financial assets is based on its business model a) for managing the asset and b)...

Q: How is the impairment test carried out for an associate? A. The goodwill is impairment tested ...

A: Introduction;- Impairment of Assets is generally identified in Balance Sheet items. Impairment can b...

Q: Talent, a local HR consulting firm, has total partners’ equity of $798,000, which is made up of Hall...

A: Hall capital+ Reynolds capital+ Morris capital = total capital let the total capital be X $619000+$1...

Q: Ace Hardware Inc has the following information: • Dividends on its 10,000 cumulative preference shar...

A: Retained Earnings The calculation of retained earnings is added the net earning which are incurred i...

Q: On January 1, the first day of the fiscal year, a company issues a $700,000, 7%, 10-year bond that p...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Christie and Jergens formed a partnership with capital contributions of $350,000 and $450,000, respe...

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and ...

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Answer 1&2

Belarus Company, your client, failed to record accrued rent income of P 25,000 as of
December 31, 2022.
Based on the foregoing, answer the following questions:
Question 1: Which of the following accounts is(are) understated by P 25,000 at the
end of year 2022 as a result of the error? |[ Select ]
V [ Select ]
he
Question 2: Which of the following accoun
Accrued Rent Receivable only
end of year 2023 as a result of the error?
None among the given choices
Question 3: What would be the adjusting e
Rent Income only
2022? [Select]
Both accrued rent receivable
and rent income
Question 4: What would be the adjusting e.
2023? [Select]
Question 5: What would be the adjusting entry if the error is discovered in year
2024? Select]

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery of this error in 2020 prior to making its estimate of doubtful accounts, what correcting journal entry should Abrat make? Ignore income taxes.
Mathew Corporation's had a specific receivable from a customer in the amount of P 600,000 as of December 31, 2020. During 2021, the customer informed Mathew Corporation that servicing of its payable will be made once there is significant improvement in their financial capabilities. Since there are no available historical data relating to similar borrowers, Mathew Corporation uses its experienced judgment to estimate the amount of impairment loss. Reasonable estimate revealed that the fair value of the receivable as of December 31, 2021 represents 40% of the outstanding receivable. QUESTION:What amount of impairment loss on its receivable should Mathew report for 2021?
Brown Corporation owns an office building and leases the offices under a one-year rental agreement. Not all tenants make timely payments of their rent. The following information were from the company’s records.2020: Rental receivable - P96,0002021: Rental receivable - P124,0002020: Unearned rentals - P320,0002021: Unearned rentals - P240,000During the year 2021, Brown received rental payments of P800,000 from its tenants. Under the accrual basis, how much is the rental revenue of Brown Corporation for the year 2021?
How much should the company recognized as compensation expense for 2021? To input answers, kindly follow the sample format below(no peso sign, with comma, no space): ex.100,000 If answer is not exact, input your answer up to two decimal places: ex. 100,235.5678 ---> 100,235.57
Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively', in the following year when paid or collected. The reported pretax income was 20,000 in 2018, 25,000 in 2019, and 23,000 in 2020. Required: 1. Compute the correct pretax income for 2018, 2019, and 2020. 2. Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes. 3. Prepare the journal entries necessary in 2021 if the errors are discovered at the end of that year. Ignore income taxes.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017. You are also given the following supplemental information: A pending lawsuit, claiming $2,700 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210. A. Using the unadjusted trial balance and supplemental information for Sun Energy Co., construct an income statement for the year ended December 31, 2017. Pay particular attention to expenses resulting from contingencies. B. Construct a balance sheet, for December 31, 2017, from the given unadjusted trial balance, supplemental information, and income statement for Sun Energy Co., paying particular attention to contingent liabilities. C. Prepare any necessary contingent liability note disclosures for Sun Energy Co. Only give one to three sentences for each contingency note disclosure.
Following is the unadjusted trial balance for Pens Unlimited on December 31, 2017. You are also given the following supplemental information: A pending lawsuit, claiming $4,200 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Pens Unlimited believes a customer may win a lawsuit for $5,000 in damages, but the outcome is only reasonably possible to occur. Pens Unlimited records warranty estimates on the basis of 2% of annual sales revenue. A. Using the unadjusted trial balance and supplemental information for Pens Unlimited, construct an income statement for the year ended December 31, 2017. Pay particular attention to expenses resulting from contingencies. B. Construct a balance sheet, for December 31, 2017, from the given unadjusted trial balance, supplemental information, and income statement for Pens Unlimited. Pay particular attention to contingent liabilities. C. Prepare any necessary contingent liability note disclosures for Pens Unlimited. Only give one to three sentences for each contingency note disclosure.
Errors During the course of your examination of the financial statements of Burnett Co., a new client, for the year ended December 31, 2019, you discover the following: Inventory at January 1, 2019, was understated by 6,000. Inventory at December 31, 2019, was overstated by 5,000. During 2019, the company received a 1,000 cash advance from a customer for merchandise to be manufactured and shipped during 2020. It had credited the 1,000 to sales revenue. The companys gross profit on sales is 50%. Net income reported on the 2019 income statement (before reflecting any adjustments for the above items) is 20,000. Required: Next Level What is the correct net income for 2019?
Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $306.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $104 million at the end of 2022. Taxable income is $1,180 million. Prepare the appropriate journal entry to record income taxes in 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
During the preparation of financial statement for Master Ltd for 2023 it was discovered thatan amount of $22,000, incurred in September 2021 and payable to an overseas supplier, wasoverlooked and not paid or provided for in the financial statement ending 30 June 2022. Theamount is considered to be material and will be permitted as a deduction for tax purposes(tax rate 30%).Required:i) Prepare the necessary journal entry to correct this error.