Assume that Muscular Consulting erroneously recorded the payment of $7,500 of owner withdrawals as a debit to Salary Expense. (a) How wouldthis error affect the equality of the trial balance? (b) How would this error affect the income statement, statement of owner’s equity, and balance sheet?
Q: Assuming the entity already render its services after 6 months from collecting the advance payment…
A: Journal entry when advance payment received: DATE ACCOUNTS DEBIT CREDIT Cash xxxx…
Q: The trial balance prepared by GD Villa Consulting as at September 30, 2020 was not in balance. In…
A: Trial balance: It is worksheet which shows all the accounts an organization has like assets,…
Q: For each of the following errors, considered individually, indicate whether the error would cause…
A: Adjusted Trial Balance Adjusted trial balance is a trial balance prepared at the end of a financial…
Q: fair value
A: While you recording prepaid adjusting journal entry. Entry :- Actual Expenses A/C ....Dr.…
Q: The following errors were made in preparing a trial balance of DK VENTURES: The P7,000 debit balance…
A: Trial balance is prepared after the ledger accounts which shows the debit and credit balance of all…
Q: Lancaster Lumber's accounting manager was reviewing the quarter end trial balance. She noticed that…
A: Answer Option C:liabilities would be overstated, Revenues would be understated Explanation:…
Q: the following errors, each considered individually, would cause the trial balance totals to be…
A: Solution: The trial balance totals would be unequal when the errors cause posting of different…
Q: A Company has performed $500 of CPA services for a client but has not billed the client as of the…
A: The company has provided services to its customer but has not billed the customer yet. It means that…
Q: Which of the following transactions is an example of accrual? a. Unrecorded income is recognized. b.…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: Mary Richardo has performed $460 of CPA services for a client but has not billed the client as of…
A: Adjusting entries are prepared at the end of the accounting year to maintain the accrual base…
Q: 1. If purchase of office equipment on account was not recorded, a. revenue is overstated. b.…
A: Hai thanks for the question. Post has multiple questions. As per company guideline expert can answer…
Q: - A law firm received $2,000 cash for legal services to be rendered in the future. The full amount…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following business events would not be recorded in the accounting records? Group of…
A: Option A, B and D are business events which are required to be recorded in accounting records,…
Q: Which of the following errors will affect the Trial balance? a. Electricity paid OMR 2,000: Debit…
A: Stationery expense = OMR 50 Correct entry for Stationery expense: DATE ACCOUNTS DEBIT CREDIT…
Q: Which of the following statements is false? 1. An income statement reports revenues earned less…
A: 1. An income statement reports revenues earned less expenses incurred. The income statement shows…
Q: On May 3, it was discovered that the following errors took place in journalizing and posting…
A: Rectification of error is a method of correcting the errors in journal entries. It can be rectified…
Q: Which of the following errors will affect the Trial balance? a. Cash received from Mr. Ahmed OMR…
A: Trial balance is effected when debit and credit side do not match. Omitting a transaction do not…
Q: Which of the following would most likely lead to an accrued adjusting entry? A. Interest revenue…
A: Accrued adjusting entry is made when expense is accrued but not paid or revenue is earned but not…
Q: Identify the impact on the income statement and balance sheet if adjusting entries for the following…
A: Adjusting entries: Adjusting entries are journal entries usually made at the end of an accounting…
Q: On November 1, Zuhoor Muscat Company provided services to customers and billed them for RO 6,500. If…
A: At the time of providing services to customers, revenue should be recorded in income statement and…
Q: The ledger of Cullumber Company includes the following unadjusted balances: Prepaid Insurance…
A: The adjustment entries are made to adjust the revenue and expenses of the current period.
Q: The following trial balance was prepared incorrectly, rearrange the accounts in proper order,…
A: Correcting entries are recorded when the transaction so recorded has some error.
Q: When, at the end of an accounting period, a revenue has been recognized in the fi nancial statements…
A: Income accrued (also referred to as accrued assets) is income received by the client but not yet…
Q: hich of the following errors, each considered individually, would cause the trial balance totals to…
A: Solution: "A payment of $543 to a creditor was posted as a debit of $5,431 to Accounts Payable and a…
Q: Assume that Sunshine Realty Co. borrowed $300,000 from Columbia First Bank and Trust. In recording…
A: a) Identify the manner in which the given error would affect the equality of the trial balance.The…
Q: All of the following about revenue recognition principle are true, except: O a Business agrees to…
A: The requirement is to solve an MCQ. All of the following about revenue recognition principle are…
Q: Which of the following errors does NOT prove the equality of the trial balance debit and credits? a)…
A: The trial balance shows the amount of assets, liabilities, revenues and expenses in a single…
Q: Which of the following will appear as a debit entry in a pre-adjustment trial balance of a sole…
A: Trial balance is the statement which is prepared for the purpose of checking if debits in the books…
Q: The following information is available for possible adjustments: 1. The uncollectible accounts were…
A: The adjustment entries are passed at the end of the reporting period to record the adjustments like…
Q: a. The adjustment for accrued wages of $5,410 was journalized as a debit to Wages Expense for…
A: Adjusted Trial Balance: Adjusted trial balance is a trial balance prepared at the end of a…
Q: A company makes an adjusting entry for unearned service revenue of Tk. 900 which has been earned and…
A: Since, revenue of Tk 900 was recorded as unearned prior to the adjustment, it was understated by Tk…
Q: The following errors took place in journalizing and posting transactions: a. Insurance of $18,000…
A: Its very much possible that while Passing same entries accountant makes some mistakes due to various…
Q: Indicate which of the following errors, each considered individually, would cause the trial balance…
A: Indicate the errors that requires a correcting entry.
Q: The accountant of Newton Legal Services failed to make an adjusting entry for supplies that had been…
A: Adjusting entries are made in order to the adjust the transactions occurred between the accounting…
Q: For each of the following errors, considered individually, indicate whether the error would cause…
A: Trial balance: A trial balance is the summary of all the ledger accounts. The trial balance is…
Q: Which of the following describes the transaction resulting in a journal entry with a debit to…
A: Salaries payable are debited when previously incurred salaries expenses are being paid now.…
Q: At the end of May, Robertson Corporation has provided services to customers, but it has not yet…
A: Accrual Adjustments means those adjustments which are required to be made because those are related…
Q: When the trial balance extracted from the books of keman Enterprises at the year-end failed to…
A: Prepaid insurance is an asset. All assets should have debit balance.
Q: The following errors took place in journalizing and posting transactions:a. Insurance of $18,000…
A: a. Prepare the correcting entry to correct the error of payment of insurance during the current…
Q: For each of the following errors, considered individually, indicate whether the error would cause…
A: Adjusted Trial Balance: The adjusted TB (trial balance) consists of all the balances of the…
Q: The following shows the unadjusted trial balance relating to Mark Wall Consulting Services for the…
A: As posted multiple sub parts we are answering only one kindly repost the unanswered question as a…
Q: Sandhill Company discovered the following errors made in January 2020. 1. A payment of Salaries…
A: Debit what comes in, Credit what goes out . Debit All expenses and losses , Credit all incomes and…
Q: For each of the following errors, considered individually, indicate whether the error would cause…
A: Requirement a: For accrued fees earned, the accounts receivable is debited for $5,340 and the fees…
Assume that Muscular Consulting erroneously recorded the payment of $7,500 of owner withdrawals as a debit to Salary Expense. (a) How would
this error affect the equality of the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- For each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.b. Revenue was recognized when a customer purchased agift card for future use.The collection of customer’s account is credited to accounts payable. What is the effect of the error in the net income of the current period and in subsequent period? Group of answer choices A. Cannot be determined based on the given information B. Understated C. Overstated D. No effectThe collection of customer’s account is credited to accounts payable. What is the effect of the error in assets and liabilities of the entity? a.Assets - overstated; Liabilities - understated b.Assets - overstated; Liabilities - overstated c.Assets - understated; Liabilities - understated d.Assets - understated; Liabilities - overstated
- Assume that Sunshine Realty Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit to Cash, $300,000, and a credit to Fees Earned, $300,000. (a) How would this error affect the equality of the trial balance? (b) How would this error affect the income statement, statement of owner’s equity, and balance sheet?The collection of customer’s account is credited to accounts payable. What is the effect of the error in assets and liabilities of the entity? Assets - overstated; Liabilities - understated Assets - understated; Liabilities - understated Assets - overstated; Liabilities - overstated Assets - understated; Liabilities - overstatedFor each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.c. An expense was recorded as an asset
- The accountant for Kerns company mistakenly posted an expense amount as an asset in the general ledger. What is the financial statement impact of this error?The payment of supplier’s account is debited to accounts receivable. What is the effect of the error in assets and liabilities of the entity? Group of answer choices a. Assets - understated; Liabilities - understated b. Assets - understated; Liabilities - overstated c. Assets - overstated; Liabilities - overstated d. Assets - overstated; Liabilities - understatedIf the income statement error is discovered in the year of error, what action is to be done by the entity? a. Reclassify the item to its proper nominal account. b. Reclassify the item to real account. c. Adjust the effect to the retained earnings account. d. Ignore the error.
- 3. Regarding the underlying conceptual basis of accounting for compensated absences, review the following statements. Check the TRUE statement(s). Check all that apply. -The payment is probable and can be reasonably estimated. -The accounting treatment for compensated absences follows the matching principle. -The amount represents an expense that has been incurred but not yet paid -The amount represents revenue that has not been recognized. -The amount owed for compensated absences is reflected on the Income Statement.Which of the following is not a characteristic of non-counterbalancing error? a. If not detected, this is not automatically corrected in the next accounting period. b. The income statement of the period in which the non-counterbalancing error is committed is misstated. c. The statement of financial position of the year of non-counterbalancing error and succeeding statement of financial position are incorrect until the error is corrected. d. If the net income of one year is understated due to non-counterbalancing error, the net income of subsequent year is also affected.The payment of supplier’s account is debited to accounts receivable. What is the effect of the error in assets and liabilities of the entity? Assets - overstated; Liabilities - overstated Assets - understated; Liabilities - overstated Assets - understated; Liabilities - understated Assets - overstated; Liabilities - understated