Russia Company, your client, failed to record prepaid insurance expense of P 120,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) overstated by P 120,000 at th end 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 the end of year 2023 as a result of the error? [ Select ] Question 3: What would be the adjusting entry if the error is discovered in year 2022? [Select] Question 4: What would be the adjusting entry if the error is discovered in year 2023? [ Select] Question 5: VWhat would be the adjusting entry if the error is discovered in year 2024? [Select] V [ Select ] Debit Retained Earnings, P 120,000; Credit Prepaid Insurance Expense, P 120,000 « Previ Nex Debit - Prepaid Insurance Expense, P 120,000; Credit - Insurance Expense, P 120,000 Qu Sub No AJE is necessary because the error already counterbalanced. Debit - Insurance Expense, P 120,000; Credit - Retained Earnings, P 120,000 tions

Russia Company, your client, failed to record prepaid insurance expense of P 120,000 as of December 31, 2022. Based on the foregoing, answer the following questions: Question 1: Which of the following accounts is(are) overstated by P 120,000 at th end 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 the end of year 2023 as a result of the error? [ Select ] Question 3: What would be the adjusting entry if the error is discovered in year 2022? [Select] Question 4: What would be the adjusting entry if the error is discovered in year 2023? [ Select] Question 5: VWhat would be the adjusting entry if the error is discovered in year 2024? [Select] V [ Select ] Debit Retained Earnings, P 120,000; Credit Prepaid Insurance Expense, P 120,000 « Previ Nex Debit - Prepaid Insurance Expense, P 120,000; Credit - Insurance Expense, P 120,000 Qu Sub No AJE is necessary because the error already counterbalanced. Debit - Insurance Expense, P 120,000; Credit - Retained Earnings, P 120,000 tions

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...

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At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a tenant during 2020. The company erroneously recorded the transaction by debiting Cash and crediting Rent Revenue in 2019 instead of 2020. Upon discovery of this error in 2020, what correcting journal entry will Framber make? Ignore income taxes.
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.
Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
It is February 16, 2020, and you are auditing Davenport Corporation's financial statements for 2019 (which will be issued in March 2020). You read in the newspaper that Travis Corporation, a major customer of Davenport, is in financial difficulty. Included in Davenports accounts receivable is 50,000 (a material amount) owed to it by Travis. You approach Jim Davenport, president, with this information and suggest that a reduction of accounts receivable and recognition of a loss for 2019 might be appropriate. Jim replies, Why should we make an adjustment? Ted Travis, the president of Travis Corporation, is a friend of mine; he will find a way to pay us, one way or another. Furthermore, this occurred in 2020, so lets wait and see what happens; we can always make an adjustment later this year. Our 2019 income and year-end working capital are not that high; our creditors and shareholders wouldnt stand for lower amounts than they already are. Required: From financial reporting and ethical perspectives, prepare a response to Jim Davenport regarding this issue.
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?
your client, failed to record accrued salaries expense of P 50,000 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 50,000 at the end of year 2022 as a result of the error? Question 2: Which of the following accounts is(are) overstated by P 50,000 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?
High company, your client, failed to record accrued salaries expense of 50,000 as of December 31, 2022Based on the foregoing, answer the following questions:1.) Which of the following accounts is(are) understated by 50,000 at the end of year 2022 as a result of the error? 2.) Which of the following accounts is(are) overstated by 50,000 at the end of year 2023 as a result of the error? 3.) What would be the adjusting entry if the error is discovered in year 2022? 4.) What would be the adjusting entry if the error is discovered in year 2023? 5.) What would be the adjusting entry if the error is discovered in year 2024?
in december 2022, the fixed monthly insurance debit order was not processed due to an oversight by insurance company. this was rectified by Ss managing director, sam who informed the insurance company. On 2 January 2023 the insurance DEBIT order was processed twice, resulting in total deduction of R55000 from Ss bank account. the trail balance needs to be adjusted to account for this. Prepare the adjustment journal entries
Managers from Cloud Ltd. have received the information that it is likely that one of its customers which represent 25%25% of trade receivables will not pay. The balance of trade receivables equals £135,200135,200. In addition, the current balance of insurance expense includes an amount of £4,2504,250 that corresponds to the next accounting period. After considering the two journal entries related to the two economic transactions, which of the following statements is true? a. Cloud Ltd. decreases assets by £29,55029,550 and increases expenses in the same quantity. b. Cloud Ltd. decreases assets by £33,80033,800, decreases expenses by £4,2504,250 and increases liabilities by £33,80033,800. c. Cloud Ltd. increases assets by £29,55029,550 and increases liabilities in £4,2504,250. d. None of the answers is true.
BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its business three years ago. The accruals and prepayments at the end of 2021 are as follows:    Unused office supplies 25,000 Accrued utilities 52,000 Rent revenue collected in advance 87,500 Interest receivable 65,500 Accrued wages 49,100 Prepaid insurance 60,000 4What is the net effect of the above errors in the 2021 netincome? (If understated, put a negative (-) sign before thenumerical value)
On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,371, Tamarisk, Inc. estimates that 8% of its accounts receivable balance of $77,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Tamarisk, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,135. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Choose a transaction date                                                          December 31, 2021May 11, 2022June 12, 2022 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount…
On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,366, Shamrock, Inc. estimates that 9% of its accounts receivable balance of $107,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Shamrock, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,212. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Choose a transaction date                                                          December 31, 2021May 11, 2022June 12, 2022 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount…