eBook,Effects of Errors on Financial StatementsThe accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,77Indicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet.Enter all amounts as positive numbers. Enter "0" in those spaces where there is no overstatement or no understatement.Error (a) The adjusting entry for unearned revenue earmed during the year ($34,900) was omitted.OverstatedUnderstated1. Revenue for the year would be2. Expenses for the year would be3. Net income for the year would be4. Assets at July 31 would be5. Labilities at July 31 would be6. Owner's equity at July 31 would beError (b) The adjusting entry for accrued wages ($12,770) was omitted.OverstatedUnderstated1. Revenue for the year would be2. Expenses for the year would beis3. Net income for the vear would be4. Assets at July 31 would be5. Liabilities at July 31 would be6. Owner's equity at July 31 would bePreviousCheck ySubmie Aigremene for194

To begin with, keeping accurate records of your transactions will aid in the organization of the…

sfects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulti Indicate the effect of each error, considered individually, on the incon Enter all amounts as positive numbers. Enter "0" in those spaces wh Error (a) The adjusting entry for unearned revenue eamed during

sfects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulti Indicate the effect of each error, considered individually, on the incon Enter all amounts as positive numbers. Enter "0" in those spaces wh Error (a) The adjusting entry for unearned revenue eamed during

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section22.1: Preparing Adjusting Entries

Problem 1OYO

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The trial balance of Wikki Cleaners at December 31, 2012, the end of the current fiscal year, is as follows: Information for the adjusting entries is as follows: a. Cleaning supplies on hand on December 31, 2012, 18,750. b. Insurance premiums expired during the year, 1,800. c. Depreciation on equipment during the year, 21,600. d. Wages accrued but not paid at December 31, 2012, 1,830. Suppose you discover that an assistant in your department had misunderstood your instructions and had provided you with the wrong information on two of the adjusting entries. Cleaning supplies consumed during the year should have been 18,750, and insurance premiums unexpired at year-end were 1,800. Make the corrections on your worksheet and save the corrected file as F1WORK4. Reprint the worksheet.
Adjusting entries and errors At the end of August, the first month of operations, the following selected data were taken from the financial statements of Tucker Jacobs, an attorney: In preparing the financial statements, adjustments for the following data were overlooked: Unbilled fees earned at August 31, 31,900. Depreciation of equipment for August, 7,500. Accrued wages at August 31, 5,200. Supplies used during August, 3,000. Instructions 1. Journalize the entries to record the omitted adjustments. 2. Determine the correct amount of net income for August and the total assets, liabilities, and stockholders equity at August 31. In addition to indicating the corrected amounts, indicate the effect of each omitted adjustment by setting up and completing a columnar table similar to the following. The first adjustment is presented as an example.
Reviewing insurance policies revealed that a single policy was purchased on March 1, for one years coverage, in the amount of $9,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.
At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.