scovered the
Q: Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry…
A: Overstated of depreciation means depreciation has been charged more than the required depreciation.…
Q: Your new audit client, Guimba Company prepared the trial balance below as of December 31, company…
A:
Q: Although entries have been recorded all year, adjusting entries have not been recorded since…
A: Journal Entry - A journal entry records the business transaction in systematic manner either…
Q: On December 31, 2011 the following data were accumulated for making the adjusting entries:
A: Adjusting entries are those entries which are passed at the end of the period so that income,…
Q: Required: Prepare a classified balance sheet at December 31, 2021, by updating ending balances from…
A: Balance sheet: One of the financial statements that records the assets, liabilities and the owner’s…
Q: If a company discovers a mistake in 2021 that was made in 2018, the company records the adjustment…
A: An accounting error is a mistake in an accounting entry that is unintentional. When an error or…
Q: Journalize the adjusting entry required under each of the following alternatives for determining the…
A: Adjusting entry means where some entries regarding prepaid or outstanding is passed to make out…
Q: Prepare year-end adjusting entries for the following transactions. Omit explanation.
A: 1. In 3rd entry, adjustment entry will be passed for rent Expired which is ($36,000 - $…
Q: Preparing the Adjusting Entries at Year-End On Nov. 30, 2016, the end of fiscal year, the following…
A: GIVEN Preparing the Adjusting Entries at Year-End On Nov. 30, 2019, the end of fiscal year, the…
Q: Required: For each of the above independent and unrelated errors, determ the effect on the 2020…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Which of the following adjusting entries prepared on December 31, 2021 (without amounts and…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Prepare Trial balance with the given ledger account balances the year ended March 2019.
A: A trial balance is a summary of all the ledger accounts maintained in a company. All the assets and…
Q: Accrued salaries of P 20,000 was overlooked at the end of 2021. What would be the adjusting entry if…
A: Accrued salaries are salaries which are due for payment but not yet paid. If company has missed to…
Q: As Per PAS 10 Events after the Reporting Period, these are events that provide evidence of…
A: The question is based on the concept of Accounting Standards.
Q: How to solve this? Need to give adjusting entries on December 31, 2020... thank u...
A: Step 1 Adjusting entries are accounting journal entries that convert a company's accounting records…
Q: Which of the following statements concerning reversing entries is true? Reversing entries are…
A: Reversing entries are those entries that are passed on the very first day of an accounting period in…
Q: Prepaid Insurance of P 60,000 was overlooked at the end of 2021. What would be the adjusting entry…
A: Note: overlooking of prepaid insurance means insurance expense are understated, due to which income…
Q: Adjusting entries can be classified as Select one: a. postponements and advances. b. deferrals and…
A: Adjusting entry are recorded at the end of the year after certain events have occured. Adjusting…
Q: Prepare adjusting entries assuming errors were discovered in (a) 2020, (b) 2021, and (c) 2022.
A: Adjusting entries refers to the journal entries in the general ledger of the company that occurs at…
Q: repare an unadjusted trial balance as of december 31 2020
A:
Q: Use the information to prepare adjusting entries as of December 31, 2019.
A: The formula:
Q: Prepare correcting entries as of December 31, 2020 7. The delivery expense of P 1,800 incurred on…
A: When transactions occur as part of the business operations of a company, records will be made…
Q: At December 31, 2022, before any year-end adjustments, Blossom Company Prepaid Insurance account had…
A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…
Q: State the entries in the expanded accounting equation for the year ended 31 December 2020. Enter…
A: Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…
Q: Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry…
A: Adjusting entry is the journal entry made to rectify the errors in certain accounts. Prior period…
Q: You are required to prepate t & LoSs Statement for the year ended 31st March, 2017 a Relance Sheet…
A: Balance sheet is defined as one the most important financial statement prepared at the end of the…
Q: which of the following would least likely require an adjusting entry at the end of the year? -…
A: Adjusting Entry: Meaning: These are the entries that are used to adjust the inaccurate display of…
Q: Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting…
A: Unearned revenue refers to revenue received but not yet earned. Here, the unearned sales revenue…
Q: Using the Balance Day Adjustment journals below as an example, identify and explain the potential…
A: If any Balance Day Adjustment journals are not posted/ processed, then it may lead to…
Q: Which of the following is the proper adjusting entry, based on a prepaid insurance account balance…
A: Prepaid insurance before adjustment is = $ 13,651an on fiscal yea ended…
Q: Calculate Hasbro's and UHS's ROE for each fiscal year. Verify if the answers below are correct if…
A: Solution:- In the given sum, financial statements of only Hasbro Company are given. So, the…
Q: Examine the above Unadjusted- and Adjusted Trial Balances. Calculate and describe all Journal…
A: Adjusting entries are the entries that are recorded at the end of accounting period for making…
Q: Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry…
A: In 2021 depreciation expense is understated which means Accumulated depreciation is understated and…
Q: Use the following đata to calculate adjustments and prepare the adjusting entries as of December 31,…
A:
Q: At December 31, 2022, before any year-end adjustments, Kingbird, Inc. Prepaid Insurance account had…
A: At the end of every financial year, adjustment entries are made to ensure that the expenses and…
Q: The adjusted trial balance is prepared a. prior to completing the adjusting entries. O b. after…
A: Trial is the summary of all ledgers which are shown under two columns, namely debit and credit. It…
Q: REQUIRED: (a) Compute 1. the correct profit (loss) for the years 2020, 2021 and 2022 the correct…
A: Adjustment Entries The purpose of providing the adjustment entry in to make more viable financial…
Q: Unearned Sales Revenue of P 120,000 was overlooked at the end of 2021. What would be the adjusting…
A: A situation of Unearned Revenue arises when any advance has been collected from customers but no…
Q: Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry…
A: Note: Understated depreciation mean depreciation expense are booked lesser than the actual…
Q: Which of the following types of adjusting entries would result in a decrease in the amount of a…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had…
A: Prior period adjustment: It refers to the adjustment made in the current year to rectify the error…
Q: Accrued rent income of P 25,000 was overlooked at the end of 2021. What would be the adjusting entry…
A: Accured income means income earned but yet not received. Following is the adjustment entry for…
Q: You are required to prepare the Trial Balance for the year ended, 31 st Decemvber, 2020.
A: Trial balance is a statement of all the debit and credit balance of accounts of the books.
Q: Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had…
A: Requirement 1:
Q: Which of the following statements about an adjusted trial balance is correct? A. It is used to…
A: Adjusted trial balance is a list of ledgers after passing adjustment entries such as depreciation,…
Q: What balance do the bills have buildings and amortized buildings on 31/12/2018 before the adjustment…
A: Carrying value of the assets is the value of the assets in the books of accounts or in the balance…
Based on the given data, prepare the
a. 2020
b. 2021
c. 2022
Step by step
Solved in 3 steps
- Cost of merchandise sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: Increase in estimated returns inventory 11,600 Merchandise inventory, May 1, 2018 380,000 Merchandise inventory, April 30, 2019 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?Appendix 2 Cost of goods sold Identify the errors in the: following schedule of the cost of goods sold for the year ended May 31, 20Y5: Cost of goods sold: Inventory, May 31, 20Y5 105,000 Cost of merchandise purchased: Purchases Purchases returns and allowances Purchases discounts Freight in Total cost of merchandise purchased 1,110,000 55,000 30,000 (22,000) 1,173,000 Inventory available for sale 1,278,000 Inventory, June 1, 20Y4 (91.300) Cost of goods sold before estimated returns S 1,186,700 Estimated returns of this years sales 43,300 Cost of goods sold 1,230,000( Appendix 6B) Inventory Costing Methods Jet Black Products uses a periodic inventory system. For 2018 and 2019, Jet Black has the following data: All purchases and sales are for cash. Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68A, compare your answers. What are the differences? Be sure to explain why any differences occurred.
- Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Cash 13,500 Accounts Receivable 72,000 Merchandise Inventory, January 1,2019 257,000 Estimated Returns Inventory 35,000 Office Supplies 3,000 Prepaid Insurance 4,500 Land 150,000 Store Equipment 270,000 Accumulated DepreciationStore Equipment 55000 Office Equipment 78,500 Accumulated DepreciationOffice Equipment 16000 Accounts Payable 27,800 Customer Refunds Payable 50,000 Salaries Payable 3,000 Unearned Rent 8,300 Notes Payable 50,000 Shirley Wyman, Capital 515,600 Shirley Wyman, Drawing 25,000 Sales 3280000 Purchases 2650000 Purchases Returns and Allowances 93,000 Purchases Discounts 37,000 Freight In 48,000 Sales Salaries Expense 300,000 Advertising Expense 45,000 Delivery Expense 9,000 Depreciation ExpenseStore Equipment 6,000 Miscellaneous Selling Expense 12,000 Office Salaries Expense 175,000 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 2,000 Depreciation Expense-Office Equipment 1,500 Miscellaneous Administrative Expense 3,500 Rent Revenue 7,000 Interest Expense 2,000 Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?Error in inventory During 2016, the accountant discovered that the physical inventory at the end of 2015 had been understated by 42,750. Instead of correcting the error, however, the accountant assumed that the error would balance out (correct itself) in 2016. Are there any flaws in the accountants assumption? Explain.( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.
- ( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash 125,000 Accounts Receivable 340,000 Merchandise Inventory. July 1,2018 415,000 Estimated Returns Inventory 25,000 Office Supplies 9,000 Prepaid Insurance 18,000 Land 300,000 Store Equipment 550,000 Accumulated DepreciationStore Equipment 190,000 Office Equipment 250,000 Accumulated DepreciationOffice Equipment 110,000 Accounts Payable 85,000 Customer Refunds Payable 20,000 Salaries Payable 9,000 Unearned Rent 6,000 Notes Payable 50,000 Amy Gant, Capital 820,000 Amy Gant, Drawing 275,000 Sales 6,590,000 Purchases 4,100,000 Purchases Returns and Allowances 32,000 Purchases Discounts 13,000 Freight In 45,000 Sales Salaries Expense 580,000 Advertising Expense 315,000 Delivery Expense 18,000 Depreciation ExpenseStore Equipment 12,000 Miscellaneous Selling Expense 28,000 Office Salaries Expense 375,000 Rent Expense 43,000 Insurance Expense 17,000 Office Supplies Expense 5,000 Depreciation Expense-Office Equipment 4,000 Miscellaneous Administrative Expense 16,000 Rent Revenue 32,500 Interest Expense 2,500 Instructions 1.Does Simkins Company use a periodic or perpetual inventory system? Explain. 2.Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3.Prepare the closing entries for Simkins Company as of June 30, 2019. 4.What would the net income have been if the perpetual inventory system had been used?Periodic inventory by three methods Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: Instructions 1.Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: Model Quantity Unit Cost Total Cost If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2.Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3.Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4.Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.