Can you please help with the attached question, thank you much. The information necessary for preparing the December 31, 2021 year-end adjusting entries for Vito's Pizza Parlor appears below.Vito's fiscal year-end is December 31.a. On July 1, 2021, purchased $18,500 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1and July 1. The annual interest rate is 10%.b. Vito's depreciable equipment has a cost of $5,200, a four-year life, and no salvage value. The equipment was purchased in2019. The straight-line depreciation method is used.c. On November 1, 2021, the bar area was leased to Jack Donaldson for one year. Vito's received $8,100 representing the first sixmonths' rent and credited deferred rent revenue.d. On April 1, 2021, the company paid $1,560 for a two-year fire and liability insurance policy and debited insurance expense.e. On October 1, 2021, the company borrowed $13,000 from a local bank and signed a note. Principal and interest at 10% will bepaid on September 30, 2022.f. At year-end, there is a $1,300 debit balance in the supplies (asset) account. Only $630 of supplies remain on hand.Required:1. Prepare the necessary adjusting journal entries at December 31, 2021.2. Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignoreincome tax expense.)Complete this question by entering your answers in the tabs below. Required 1 Required 2Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignoreincome tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.)Adjustments to revenues:Adjustments to expenses:IncomeOverstated(Understated)$0

Every business organization does financial transactions to run the business. Companies should record…

Required 1 Required 2 Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.) djustments to revenues: djustments to expenses: Income Overstated (Understated)

Required 1 Required 2 Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.) djustments to revenues: djustments to expenses: Income Overstated (Understated)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.19E: Effects of errors on financial statements If the net income for the current year had been $2224600...

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required: 1. Determine the net increase/decrease in net income for 2021. 2.Prepare a compound adjusting journal entry to reflect the correct net incomefor 2021, assuming that the books of 2021 are still open (do not use “incomesummary” as an account title).
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Which of the following is NOT an accounting method that would increase the current ratio (currently 2:1)? a. Not adjusting prepaid insurance at year end b. Recognising unearned revenue as revenue c. Not recognising accrued wages d. Changing the method of depreciation
Its omission at year end will result to understated net income. a. accrued expense and unearned income b. unearned income c. accrued income d. accrued expense
A. By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made for the above errors? B. Compute for the adjusted net income for the year 2021.
Which of the following is not a characteristic of adjusting entries? a. Reduce the balances of revenue, expense, and dividend accounts to zero. b. Allow for proper recognition of revenues and expenses. c. Are part of accrual-basis accounting. d. Are recorded at the end of the accounting period.
Effects of errors on financial statements If the net income for the current year had been $2224600 in Exercise 3-18, what would have been the correct net income if the proper adjustments had been made?
Effect of omitting adjustment Assume that the error in Exercise 3-15 was not corrected and that the $6750 of accrued salaries was included in the first salary payment in January 20Y7. Indicate which items will he erroneously stated LWC1LL%C of failure to correct the initial error on (a) the income statement for January 20Y7 and (h) the balance sheet as of January 31, 20Y7.
State the effect the following situation would have on the amount of annual net income reported for 2019. The collection of USD 5,000 for services yet unperformed as of December 31, was credited to a revenue account and not adjusted. Group of answer choices Net income is understated, liabilities are overstated Net income is overstated, liabilities are understated Net income is understated, assets are overstated Net income is overstated, assets are overstated
1.Which of the following would be the correct adjustment if there was an increase in an accrual? Select one: a. The amount of the increase is deducted (credited) from the expense on the income statement and the increase is added (debited) to the existing accrual in the balance sheet b. The amount of the increase is added (credited) to the expense on the income statement and the increase is deducted (debited) to the existing accrual in the balance sheet c. The amount of the increase is included as an expense (a debit) on the income statement and the increase is added (credited) to the existing accrual in the balance sheet d. None of the above statements are correct 2. If it is known that a debtor cannot pay because of bankruptcy, the amount to be written off is shown as: Select one: a. A credit on the income statement and as a debit on the balance sheet by increasing the amount shown for receivables b. A debit on the income statement and as a credit on the balance sheet by…
Effects of Adjusting Entries on the Basic Accounting Equation Four adjusting entries are shown below. a. Wages Expense 3,410 Wages Payable 3,410 b. Accounts Receivable 8,350 Service Revenue 8,350 c. Rent Expense 2,260 Prepaid Rent 2,260 d. Unearned Service Revenue 5,510 Service Revenue 5,510 Required: CONCEPTUAL CONNECTION: Analyze the adjusting entries and identify their effects on the financial statement accounts. (Note: Ignore any income tax effects.) If an amount box does not require an entry, please enter zero ("0"). Enter decreases as negative numbers. Transaction Assets Liabilities BeginningCommonShares RetainedEarnings Revenues a. b. c. d.
Type of Adjustment Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: a. Cash received for services not yet rendered b. Insurance paid for the next year c. Interest revenue earned but not received d. Salaries owed but not yet paid