For the year ended December 31, Beard Clinical Supplies Co. mistakenly omitted adjusting entries for (1) $8,060 of unearned revenue that was earned, (2)earned revenue that was not billed of $10,320, and (3) accrued wages of $6,420. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and(c) net income.a. Revenues wereb. Expenses werec. Net income wasby $by $by $

Revenues are understated as revenue was revenue was unbilled and earned revenue from unearned…

Answered: ere ere vas by $ by $ by

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...

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Allowance for Doubtful Accounts has a credit balance of $912 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible recervables af $13,123. Which of the following entries records the proper adjustment for Bad Detit Expense? Select the correct answer. e Allownce for Douhtful Aoounts, S14,035, credit Bad Deht Expense, S14,035 dabit Allowance for Doubiful Accounts. $12.211; cndit Bad Dehi Eapenae, S12,211 debi ad Dete Expene, S14.035; credn Allowance for Douhtful Acconts, S14.035 dhi ad De Expense, S12.2I1: credit Allowance for Douhtful Accouts, S12.211
After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the 36,600 balance of the controlling account in the general ledger: Assuming that the controlling account balance of 36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).
Ray 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? Question 2: Which of the following accounts is(are) overstated by P 25,000 at the end of year 2023 as a result of the error? Question 3: What would be the adjusting entry if the error is discovered in year 2022? Question 4: What would be the adjusting entry if the error is discovered in year 2023? Question 5: What would be the adjusting entry if the error is discovered in year 2024?
At year-end a trial balance prepared shows total credits exceed total debits by $855. This discrepancy could have been caused by a. An error in the general journal where an increase of $855 in accounts payable was recorded as a decrease of $855 in accounts payable. b. The ledger balance of accounts receivable was wrongly entered in the trial balance as 95 instead of $950. c. The ledger balance for accounts payable of $8,550 entered in the trial balance as $855. d. $855 increase in accounts receivable was recorded as a $855 increase in cash in general journal.
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $764. During the year, previously written off accounts of $140 are reinstated and accounts totaling $736 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be?
Warner Company's year-end unadjusted trial balance shows accounts receivable of $110,000, allowance for doubtful accounts of $710 (credit), and sales of $390,000. Uncollectibles are estimated to be 1.50% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $850?
Milan Company reported pretax income of P 6,500,000 on December 31, 2021. During your audit, the following errors were revealed: Insurance premium covering the period from July 1, 2021 to July 1, 2022, amounting to P 200,000 was paid and recorded as expense on July 31, 2021. The client did not make any adjustment at year end. Advertising for December 2021, amounting to P 500,000, was recorded when payment was made in January 2022. Merchandise worth P 1,000,000 was purchased in 2021 and included in ending inventory. However, the purchase was recorded only in 2022. On November 1, 2021, the P 300,000 was received representing rent of an equipment applicable for six months. Upon receipt, the entire amount was credited to income account. A merchandise valued at P 1,500,000 was properly recorded as purchase at year-end. Since the merchandise was still at the port area, it was inadvertently omitted from the inventory on December 31, 2021. What is the corrected pretax income for the year…
Milan Company reported pretax income of P 6,500,000 on December 31, 2021. During your audit, the following errors were revealed: Insurance premium covering the period from July 1, 2021 to July 1, 2022, amounting to P 200,000 was paid and recorded as expense on July 31, 2021. The client did not make any adjustment at year end. Advertising for December 2021, amounting to P 500,000, was recorded when payment was made in January 2022. Merchandise worth P 1,000,000 was purchased in 2021 and included in ending inventory. However, the purchase was recorded only in 2022. On November 1, 2021, the P 300,000 was received representing rent of an equipment applicable for six months. Upon receipt, the entire amount was credited to income account. A merchandise valued at P 1,500,000 was properly recorded as purchase at year-end. Since the merchandise was still at the port area, it was inadvertently omitted from the inventory on December 31, 2021. What is the corrected pretax income for the year…
Warner Company's year-end unadjusted trial balance shows accounts receivable of $118,000, allowance for doubtful accounts of $790 (credit), and sales of $470,000. Uncollectibles are estimated to be 1.50% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,250? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the December 31 year-end adjusting entry for uncollectibles. View transaction list Journal entry worksheet
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $118,000, allowance for doubtful accounts of $790 (credit), and sales of $470,000. Uncollectibles are estimated to be 1.50% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles.2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,250?
A trial balance prepared at year-end shows total credits exceed total debits by $765. This discrepancy could have been caused by a. An error in the general journal where a $765 increase in Accounts Payable was recorded as a $765 decrease in Accounts Payable. b. The ledger balance for Accounts Payable of $7,650 being entered in the trial balance as $765. c. A general journal error where a $765 increase in Accounts Receivable was recorded as a $765 increase in Cash. d. The ledger balance of $850 in Accounts Receivable was entered in the trial balance as $85. e. An error in recording a $765 increase in Cash as a credit.
At the end of the current year, the accounts receivable account has a balance of $903,000 and sales for the year total $10,240,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: a. The allowance account before adjustment has a negative balance of $(12,200). Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a negative balance of $(12,200). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000. c. The allowance account before adjustment has a positive balance of $4,700. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a positive balance of $4,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000.

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