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PROBLEM NO 3 Direction: Put a check mark (/) on the column which reflects the Net Effect of accounting errors. Temporary Accounts Real Accounts No Effect Accounting Errors Overstate Understate Overstate Understate 1. Personal withdrawals from business was not recorded. 2. Purchase of a computer for cash was not recognized 3. Issuance of a note for P12,000 as payment of accounts payable was erroneously taken up as P21,000. 4. Accrued expenses are not recorded 5. Cash sales was recorded as credit Sales. 6. Accrued revenue was not recorded 7. Depreciation expense was short by 1,000. 8. Actual expense of 25,000 was erroneously recorded as P52,000 9. A 5% allowance for uncollectible accounts was neglected. 10. Interest on Notes Payable of 32,000 was recorded as 23,000.

PROBLEM NO 3 Direction: Put a check mark (/) on the column which reflects the Net Effect of accounting errors. Temporary Accounts Real Accounts No Effect Accounting Errors Overstate Understate Overstate Understate 1. Personal withdrawals from business was not recorded. 2. Purchase of a computer for cash was not recognized 3. Issuance of a note for P12,000 as payment of accounts payable was erroneously taken up as P21,000. 4. Accrued expenses are not recorded 5. Cash sales was recorded as credit Sales. 6. Accrued revenue was not recorded 7. Depreciation expense was short by 1,000. 8. Actual expense of 25,000 was erroneously recorded as P52,000 9. A 5% allowance for uncollectible accounts was neglected. 10. Interest on Notes Payable of 32,000 was recorded as 23,000.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 72E
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PROBLEM NO. 3 Direction: Put a check mark (/) on the column which reflects the Net Effect of accounting errors. Temporary Accounts Real Accounts No Effect Accounting Errors Overstate Understate Overstate Understate 1. Personal withdrawals from business was not recorded. 2. Purchase of a computer for cash was not recognized 3. Issuance of a note for P12,000 as payment of accounts payable was erroneously taken up as P21,000. 4. Accrued expenses are not recorded 5. Cash sales was recorded as credit Sales. 6. Accrued revenue was not recorded 7. Depreciation expense was short by 1,000. 8. Actual expense of 25,000 was erroneously recorded as P52,000 9. A 5% allowance for uncollectible accounts was neglected. 10. Interest on Notes Payable of 32,000 was recorded as 23,000.
Transcribed Image Text:PROBLEM NO. 3 Direction: Put a check mark (/) on the column which reflects the Net Effect of accounting errors. Temporary Accounts Real Accounts No Effect Accounting Errors Overstate Understate Overstate Understate 1. Personal withdrawals from business was not recorded. 2. Purchase of a computer for cash was not recognized 3. Issuance of a note for P12,000 as payment of accounts payable was erroneously taken up as P21,000. 4. Accrued expenses are not recorded 5. Cash sales was recorded as credit Sales. 6. Accrued revenue was not recorded 7. Depreciation expense was short by 1,000. 8. Actual expense of 25,000 was erroneously recorded as P52,000 9. A 5% allowance for uncollectible accounts was neglected. 10. Interest on Notes Payable of 32,000 was recorded as 23,000.
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