At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not been recorded in 2021 or 2022. If Neck has not closed the books for 2022, the journal entry to correct the error will Answer a. a debit to Retained Earnings and a credit to Patent for $444,000. b. a debit to Amortization Expense and a credit to Patent for $444,000. c. a debit to Amortization Expense and a credit to Patent for $222,000. d. include debits to Retained Earnings and Amortization Expense of $222,000 and a credit to Patent for $444,000.
Q: Pedro Company has $199,500 of machinery being depreciated over 5 years. There is no estimable…
A: Under declining balance method, depreciation rate is determined and then depreciation is charged on…
Q: For the year ended December 31, 2021, Norstar Industries reported net income of $950,000. At January…
A: It means the profit which has been earned or the net profit which has been earned by an organisation…
Q: Crane Company reports the following for the month of June. Units June 1 Inventory 400 Purchase 550…
A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…
Q: Novak Company uses a periodic inventory system. For April, when the company sold 450 units, the…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5) Huron Company…
A: The variance is the difference between the standard and actual cost production data. The variance…
Q: On January 1,2014 the Mayfair Company has machinery on the books that originally cost $100,000. It…
A: Given that Mayfair Company has machinery on the books that originally cost = $100,000.And it…
Q: When an uncollectible account is recovered after it has been written off, he company should record…
A: Under the allowance method company makes provisions for uncollectible accounts at the end of the…
Q: 3 Break-even Point in units 9 0 1 Break-even in dollars 2 $424,594 23 24 849.19 25 26 Reconciliation…
A: Formula Total sales = Margin of safety sales + Breakeven salesGiven in the question…
Q: When preparing adjusting entries at December 31, 2022, DC Co. discovered that sales salaries of…
A: The objective of the question is to understand the impact of an uncorrected error in the accrual of…
Q: Entries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $168,000 has an…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Required information [The following information applies to the questions displayed below] Praveen…
A: The break-even sales are the sales where business earns no profit or loss during the period. The…
Q: B) C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a…
A: Operating income or loss is the amount of money earned or loss incurred by the entity from its daily…
Q: Banko Incorporated manufactures sporting goods. The following information applies to a machine…
A: Depreciation:— it means decrease in the value of fixed assets due to the use of Assets.Depreciation…
Q: Zing Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of…
A: Cost of Regular Columbian = Quantity required x Cost per pound= 6,500 pounds x $6 per pound=…
Q: The following data pertain to Royal Lighting Company's oak-clad, contemporary chandelier. Variable…
A: It is the pricing strategy in which the target price of a product is determined by adding a markup…
Q: Amelia’s business goes bankrupt this year. To close her business, Amelia starts by selling off her…
A: Assets:Assets represent economic resources that have value and are owned or controlled by an…
Q: Gloria and Michael started a partnership, each one did an initial investment of 20,000 in cash. What…
A: In this question, we need to pass the journal entry for initial investment made by Gloria and…
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.…
A: Flexible budget :— This budget is prepared by multiplying standard variable amount per activity…
Q: Pharoah Construction's manufacturing costs for August when production was 1,170 units are as…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors.…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: (Pro forma accounts receivable balance calculation) The accounts receivable for Pastors Brewing…
A: A cash collection budget is a crucial financial document that provides a detailed overview of the…
Q: 1.Prepare a tuition revenue budget for the upcoming academic year. 2. Determine the number of…
A: Budgeted revenues refer to the estimated revenues. Budgets are prepared for the future. The budgeted…
Q: Cocoa Corporation is preparing its December 31, 2023 financial statements. On March 1, the company…
A: The objective of the question is to determine the correct accounting treatment for a lawsuit…
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: Under the Differential Analysis, Differential effects of revenues and costs on Net Income need to be…
Q: Byron Truck Repair uses a specialized hydraulic lift to work on trucks and busses. Data on the lift…
A: Activity based costing is a method used in allocating costs to products. It allocates costs based on…
Q: Adams Co. uses a job order costing system. The following information is available from its records.…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.The predetermined…
Q: Robert Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine…
A: Expenses incurred by a business that are not directly connected to goods or services are known as…
Q: Island Solutions is a technology business that retails and wholesales computer hardware along with a…
A: The inventory accounting system is significant because of its direct influence on financial…
Q: Honey Bun Limited is a food processing company listed on the Jamaica Stock Exchange (JSE). They use…
A: Switching from GAAP to IFRS involves a comprehensive process that requires careful planning,…
Q: 12. Journalize for Taci Company the lending of the money on June 1. 13. Journalize the collection of…
A: The journal entries are prepared to keep the record of day to day transactions of the business.The…
Q: Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA…
A: The Undepreciated Capital Cost (UCC) is a concept in accounting and tax depreciation that represents…
Q: Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business…
A: The question is related to allocation of Departmental cost to its three divisions on the basic of…
Q: Complete the flexible budget variance analysis by filling in the blanks in the partial flexible…
A: Variances are the differences between the actual values and budgeted values. If the budgeted values…
Q: Use the following single-step income statement of Crane Company to prepare a multiple step version.…
A: Gross profit = Sales - cost of goods soldIncome from operations = Gross profit - operating expenses
Q: The following information for 2019 is available for Marino Company: 1. The beginning inventory is…
A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…
Q: Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per…
A: The contribution margin of a business indicates the amount of revenue left over after variable costs…
Q: A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires…
A: The cash budget is prepared to record the cash receipts and cash payments during the period. It…
Q: Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many…
A: As per the Honor code of Bartleby we are bound to give the answer of the first three sub parts only,…
Q: Haru is a self-employed cash-method, calendar-year taxpayer who made the following cash payments…
A: $1400 of interest on short term loan As given half of the loan proceeds were…
Q: A company makes bikes from recycled metal. For a recent job lot of 200 bikes, the company incurred…
A: Total manufacturing cost= Direct material + Direct labor + Factory overheadNote- Factory overhead…
Q: [The following information applies to the questions displayed below.] Smith-Kline Company maintains…
A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…
Q: Placker Corporation uses a job-order costing system with a single, plantwide, predetermined overhead…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.The predetermined…
Q: answer in text form please (without image), Note: .Every entry should have narration please…
A: Answer:- Lease is an agreement under which one party (lessee) agrees to pay to another party…
Q: When studying process costing, calculating cost per equivalent unit is the only thing that matters.…
A: Lets understand the basics.Equivalent unit is a physical units expressed in terms of finished goods.…
Q: Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the…
A: The variance is the difference between the standard and actual cost of production data. The variance…
Q: Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and…
A: Contribution margin is the amount of money earned by the entity after deducting variable expenses…
Q: Sandhill Inc. manufactures and sells computers that include an assurance-type warranty for 90 days.…
A: Journal entries are used to record business transactions. The company making sales also provides…
Q: Required information (The following information applies to the questions displayed below] Jaguar…
A: Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…
Q: Morris Associates bought a machine for $82,000 cash. The estimated useful life was five years and…
A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…
Q: Refer to the Tax Rate Table below (or Table 2.3 in the book). Corporation Growth has $92000 in…
A: Income tax is charged on the taxable income of the corporation. It can be calculated on the basis of…
At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not been recorded in 2021 or 2022. If Neck has not closed the books for 2022, the
Answer
a debit to
a debit to Amortization Expense and a credit to Patent for $444,000.
a debit to Amortization Expense and a credit to Patent for $222,000.
include debits to Retained Earnings and Amortization Expense of $222,000 and a credit to Patent for $444,000.
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the following three situations: 1. Machine A was purchased for 50,000 on January 1, 2014. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 25,000. The estimated residual value remains at 5,000, but the service life is now estimated to be 1 year longer than estimated originally. 2. Machine B was purchased for 40,000 on January 1, 2017. It had an estimated residual value of 5,000 and an estimated service life of 10 years. it has been depreciated under the double-declining-balance method for 2 years. Now, at the beginning of the third year, Ryel has decided to change to the straight-line method. 3. Machine C was purchased for 20,000 on January 1, 2018, Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value of the machine is 2,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry necessary for each situation to record depreciation expense for 2019.At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.At the end of 2020, while auditing Sandlin Companys books, before the books have been closed, you find the following items: a. A building with a 30-year life (no residual value, depreciated using the straight-line method) was purchased on January 1, 2020, by issuing a 90,000 non-interest-bearing, 4-year note. The entry made to record the purchase was a debit to Building and a credit to Notes Payable for 90,000; 12% is a fair rate of interest on the note. b. The inventory at the end of 2020 was found to be overstated by 15,000. At the same time, it was discovered that the inventory at the end of 2019 had been overstated by 35,000. The company uses the perpetual inventory system. c. For the last 3 years, the company has failed to accrue salaries and w-ages. The correct amounts at the end of each year were: 2018, 12,000; 2019, 18,000; and 2020, 10,000. Required: 1. Prepare journal entries to correct the errors. Ignore income taxes. 2. Assume, instead, that the company discovered the errors after it had closed the books. Prepare journal entries to correct the errors. Ignore income taxes.
- The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.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 9,800In examining Samson Manufacturing Companys books, you find on the December 31, 2019, balance sheet the item, Costs of patents, 308,440. Referring to the ledger accounts, you note the following items regarding one patent acquired in 2016; There are no credits in the account, and the company has not recorded any amortization for any of the patents. There are three other parents issued in 2013, 2015, and 2016; all were developed by the staff of Samson. The patented articles are presently very marketable, but are estimated to be in demand only for the next few years. Required: Discuss the accounting issues related to the items included in the Patent account.
- During 2019, White Company determined that machinery previously depreciated over a 7-year life had a total estimated useful life of only 5 years. An accounting change was made in 2019 to reflect the change in estimate. If the change had been made in 2018, accumulated depreciation at December 31, 2018, would have been 1,600,000 instead of 1,200,000. As a result of this change, the 2019 depreciation expense was 100,000 greater than it would have been if no change were made. Ignoring income tax considerations, what is the proper amount of the adjustment to Whites January 1, 2019, balance of retained earnings? a. 0 b. 100,000 c. 280,000 d. 400,000Refer 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, 000Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any adjustments: Additional adjustment information: (a) depreciation on buildings, 1,100; on equipment, 600; (b) bad debts expense, 240; (c) interest accumulated but not paid: on note payable, 50; on mortgage payable, 530 (this interest is due during the next accounting period); (d) insurance expired, 175; (e) salaries accrued but not paid 370; (f) rent was collected in advance and the performance obligation is now satisfied, 800; (g) office supplies cm hand at year-end, 230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020. Required: 1. Transfer the account balances to a 10-column worksheet and prepare a trial balance. 2. Prepare the adjusting entries in the general journal and complete the worksheet. 3. Prepare the companys income statement, retained earnings statement, and balance sheet. 4. Prepare closing entries in the general journal.
- It is the end of 2019 and you are an accountant for Stone Company. During 2019, sales of the companys products slumped and the companys earnings are expected to be much less than those of 2018. The president comes to you with an idea. He says, Our companys property, plant, and equipment cost 300,000, and that is the amount we usually report on our balance sheet. However, I just had these assets appraised by an independent appraiser, and she says they are worth 400,000. I think that the company should report the property, plant, and equipment at this amount on its December 31, 2019, balance sheet and should report the 100,000 increase in value as a gain on the 2019 income statement. If we use this approach, it will show how much our company is really worth and increase our earnings. This will make our shareholders happy. What do you think? Required: Prepare a written response to the president.In completing the adjusting entries for 2021 in early 2022, the internal auditor discovered that a patent, with an estimated eight year life that was registered in January, 2021 had not been amortized. The patent cost $370,000. The income tax rate is 40%. The books are still open in 2021. What is the journal entry to correct the error? Group of answer choices Amortization Expense-Patent 46,250 Retained Earnings46,250 Patent 46,250 Income Taxes Receivable18,500 Retained Earnings 64,750 Amortization Expense-Patent 46,250 Income Taxes Payable18,500 Retained Earnings 27,750 Amortization Expense-Patent 46,250 Patent 46,250 PreviousNextOn January 2, 2021, Teal Mountain Company purchased a patent for $47,800. The patent has an estimated useful life of 25 years and a 20-year legal life.What entry would the company make at December 31, 2021 to record amortization expense on the patent? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
