Business
AccountingIntermediate Accounting: Reporting And AnalysisAt the end of 2019, Cortex Company failed to accrue interest revenue of $3,200 that it had earned but not received on an outstanding note receivable. Instead, Cortex increased interest revenue in 2020 when it received the cash. Upon discovery of this error in 2020, what correcting journal entry will Cortex make? Ignore income taxes.
At the end of 2019, Cortex Company failed to accrue interest revenue of $3,200 that it had earned but not received on an outstanding note receivable. Instead, Cortex increased interest revenue in 2020 when it received the cash. Upon discovery of this error in 2020, what correcting journal entry will Cortex make? Ignore income taxes.
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Intermediate Accounting: Reporting...
3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFindarrow_forward
Intermediate Accounting: Reporting...
3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
Solutions
Chapter
Section
Chapter 22, Problem 9RE
Textbook Problem
At the end of 2019, Cortex Company failed to accrue interest revenue of $3,200 that it had earned but not received on an outstanding note receivable. Instead, Cortex increased interest revenue in 2020 when it received the cash. Upon discovery of this error in 2020, what correcting journal entry will Cortex make? Ignore income taxes.
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Chapter 22 Solutions
Intermediate Accounting: Reporting And Analysis
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addCh. 22 - Describe the three types of accounting changes.Ch. 22 - Describe the two possible methods that a company...Ch. 22 - Describe two situations in which a company could...Ch. 22 - What steps are necessary to apply the...Ch. 22 - Does the adoption of a new accounting principle...Ch. 22 - What are direct and indirect effects of a change...Ch. 22 - In which situations may it be impracticable for a...Ch. 22 - How does a company report a change in an...Ch. 22 - Define a change in estimate. What is the proper...Ch. 22 - What distinguishes a change in an accounting...
Ch. 22 - How is a change in depreciation method accounted...Ch. 22 - Describe a change in a reporting entity. How does...Ch. 22 - How does a company report an error of a prior...Ch. 22 - Describe two errors that affect only a companys...Ch. 22 - Describe two errors that affect only a companys...Ch. 22 - What is a counterbalancing error? Describe two...Ch. 22 - What is a noncounter balancing error? Describe two...Ch. 22 - Why does a company correct errors even after they...Ch. 22 - How does the accounting for an indirect effect of...Ch. 22 - If a company that uses IFRS discovers an error but...Ch. 22 - The cumulative effect of an accounting change...Ch. 22 - When a change in accounting principle is made...Ch. 22 - On January 1, 2019, Belmont Company changed its...Ch. 22 - A change in the expected service life of an asset...Ch. 22 - During 2019, White Company determined that...Ch. 22 - Generally, how should a change in accounting...Ch. 22 - On January 2, 2017, Garr Company acquired...Ch. 22 - A company has included in its consolidated...Ch. 22 - Shannon Corporation began operations on January 1,...Ch. 22 - Shannon Corporation began operations on January 1,...Ch. 22 - The two methods of reporting an accounting change...Ch. 22 - Heller Company began operations in 2019 and used...Ch. 22 - Refer to RE22-2. Assume the pretax cumulative...Ch. 22 - Refer to RE22-2. Assume Heller Company had sales...Ch. 22 - Bloom Company had beginning unadjusted retained...Ch. 22 - Suppose that Blake Companys total pretax...Ch. 22 - Bliss Company owns an asset with an estimated life...Ch. 22 - At the end of 2019, Framber Company received 8,000...Ch. 22 - At the end of 2019, Cortex Company failed to...Ch. 22 - At the end of 2019, Jayrad Company paid 6,000 for...Ch. 22 - At the end of 2019, Manny Company recorded its...Ch. 22 - Abrat Company failed to accrue an allowance for...Ch. 22 - The following are independent events: a. Changed...Ch. 22 - The following are independent events: a. Changed...Ch. 22 - The following are independent events: a. A...Ch. 22 - Change in Inventory Cost Flow Assumption At the...Ch. 22 - Fava Company began operations in 2018 and used the...Ch. 22 - Berg Company began operations on January 1, 2019,...Ch. 22 - Delta Oil Company uses the successful-efforts...Ch. 22 - In 2020, Frost Company, which began operations in...Ch. 22 - Gundrum Company purchased equipment on January 1,...Ch. 22 - Newton Company introduced a line of laptop...Ch. 22 - On January 1, 2014, Klinefelter Company purchased...Ch. 22 - The following are independent errors made by a...Ch. 22 - The following are independent errors made by a...Ch. 22 - Refer to the information in E22-13. Required:...Ch. 22 - The following are independent errors: a. In...Ch. 22 - Dudley Company failed to recognize the following...Ch. 22 - On January 2, 2019, Quo Inc. hired Reed as its...Ch. 22 - At the beginning of 2020, Flynne Company decided...Ch. 22 - Koopman Company began operations on January 1,...Ch. 22 - Schmidt Company began operations on January 1,...Ch. 22 - Since Goode Oil Company was formed in 2018, it has...Ch. 22 - Kraft Manufacturing Company manufactures two...Ch. 22 - Jackson Company has decided to issue common stock...Ch. 22 - At the beginning of 2020, Holden Companys...Ch. 22 - At the end of 2020, while auditing Sandlin...Ch. 22 - At the beginning of 2020, Tanham Company...Ch. 22 - A review of Anderson Corporations books indicates...Ch. 22 - Cask Companys bookkeeper, who has maintained its...Ch. 22 - Gray Companys financial statements showed income...Ch. 22 - Ingalls Corporation is in the process of...Ch. 22 - There are three types of accounting changes:...Ch. 22 - The various types of accounting changes may...Ch. 22 - Berkeley Company, a manufacturer of many different...Ch. 22 - When the FASB issues a new generally accepted...Ch. 22 - It is important in accounting theory to be able to...Ch. 22 - In 2001, Enron Corporation filed financial...Ch. 22 - You are auditing the financial records of a...Ch. 22 - Disclosures Obtain Kelloggs 2017 annual report...Ch. 22 - Obtain LVMH (Moet Hennessy 2 Louis Vuitton)s 2017...Ch. 22 - Sometimes a business entity may change its method...
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