Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 3, Problem 27E
The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted
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The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant’s adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.
The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trialbalances. Assume that all balances in the unadjusted trial balance and the amounts of theadjustments are correct. Identify the errors in the accountant’s adjusting entries, assumingthat none of the accounts were affected by more than one adjusting entry.
During the adjusting process, the receptionist miscounted the office supplies in the closet. She thought there were $750 worth of supplies left, but there are only $500. What is the effect of this error on the financial statements? What specific accounts are being effected? Which financial statements are incorrect? How will net income be effected? Draw T accounts if it will help you think this through.
Chapter 3 Solutions
Financial Accounting
Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (a) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - Prob. 7DQCh. 3 - Does every adjusting entry affect net income for a...Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQ
Ch. 3 - Indicate with a Yes or No whether or not each of...Ch. 3 - Indicate with a Yes or No whether or not each of...Ch. 3 - Classify the following items as (1) prepaid...Ch. 3 - Classify the following items as (1) prepaid...Ch. 3 - The supplies account had a beginning balance of...Ch. 3 - The prepaid insurance account had a beginning...Ch. 3 - The balance in the unearned fees account, before...Ch. 3 - Prob. 4PEBCh. 3 - At the end of the current year, 23,570 of fees...Ch. 3 - At the end of the current year, 17,555 of fees...Ch. 3 - We-Sell Realty Co. pays weekly salaries of 11,800...Ch. 3 - Prospect Realty Co. pays weekly salaries of 27,600...Ch. 3 - Prob. 7PEACh. 3 - The estimated amount of depreciation on equipment...Ch. 3 - For the year ending August 31, 2016, Mammalia...Ch. 3 - For the year ending April 30, 2016, Urology...Ch. 3 - For each of the following errors, considered...Ch. 3 - For each of the following errors, considered...Ch. 3 - Prob. 10PEACh. 3 - Prob. 10PEBCh. 3 - Classify the following items as (a) prepaid...Ch. 3 - The following accounts were taken from the...Ch. 3 - The balance in the supplies account, before...Ch. 3 - The supplies and supplies expense accounts at...Ch. 3 - At March 31, the end of the first month of...Ch. 3 - The balance in the prepaid insurance account,...Ch. 3 - The prepaid insurance account had a balance of...Ch. 3 - The balance in the unearned fees account, before...Ch. 3 - Prob. 9ECh. 3 - At the end of the current year, 22,650 of fees...Ch. 3 - The balance in the unearned fees account, before...Ch. 3 - The adjusting entry for accrued fees was omitted...Ch. 3 - Ocular Realty Co. pays weekly salaries of 16,600...Ch. 3 - Prob. 14ECh. 3 - Accrued salaries owed to employees for October 30...Ch. 3 - Assume that the error in Exercise 3-15 was not...Ch. 3 - Art Imaging Company was organized on April 1 of...Ch. 3 - The estimated amount of depreciation on equipment...Ch. 3 - The balance in the equipment account is...Ch. 3 - Prob. 20ECh. 3 - For a recent period, the balance sheet for Costco...Ch. 3 - Prob. 22ECh. 3 - The accountant for Healthy Life Company, a medical...Ch. 3 - If the net income for the current year had been...Ch. 3 - On December 31, a business estimates depreciation...Ch. 3 - The unadjusted and adjusted trial balances for...Ch. 3 - The accountant for Evas Laundry prepared the...Ch. 3 - The following data (in millions) are taken from...Ch. 3 - Prob. 29ECh. 3 - On March 31, 2016, the following data were...Ch. 3 - Selected account balances before adjustment for...Ch. 3 - Reliable Repairs Service, an electronics repair...Ch. 3 - Good Note Company specializes in the repair of...Ch. 3 - Rowland Company is a small editorial services...Ch. 3 - At the end of April, the first month of...Ch. 3 - Prob. 1PBCh. 3 - Selected account balances before adjustment for...Ch. 3 - Crazy Mountain Outfitters Co., an outfitter store...Ch. 3 - The Signage Company specializes in the maintenance...Ch. 3 - Reece Financial Services Co., which specializes in...Ch. 3 - At the end of August, the first month of...Ch. 3 - The unadjusted trial balance that you prepared for...Ch. 3 - Daryl Kirby opened Squid Realty Co. on January 1,...Ch. 3 - Prob. 2CPCh. 3 - Prob. 3CP
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- Adjusting entries from trial balances The accountant for Evas Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountants adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.arrow_forwardThe bookkeeper has completed a work sheet and has journalized and posted the closing entries, but he forgot to journalize and post the adjusting entries from the work sheet. What are the effects of these actions and omissions? How would these actions and omissions affect the accounting records and the resulting financial statements?arrow_forwardFor 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.arrow_forward
- For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. a. The adjustment for accrued wages of $5,410 was journalized as a debit to Wages Expense for $5,410 and a credit to Accounts Payable for $5,410. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.$ b. The entry for $3,240 of supplies used during the period was journalized as a debit to Supplies Expense of $3,240 and a credit to Supplies of $3,420. Enter the difference between the debit and credit totals. If the totals are equal, enter a zero.$arrow_forwardAfter preparing the trial balance, the accountant finds that the total of debit side is OMR 125,600 and Total of Credit Side OMR 126,500. This difference should be treated before rectification of errors wasarrow_forwardFor each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for $5,200.b. The entry for $1,125 of supplies used during the period was journalized as a debit to Supplies Expense of $1,125 and a credit to Supplies of $1,152.arrow_forward
- At the end of May, Robertson Corporation has provided services to customers, but it has not yet billed these customers nor have any of them paid for those services. If Robertson makes no adjusting entry associated with these unpaid services provided, will any accounts be misstated? If so, indicate which ones and the direction of the misstatement.arrow_forwardDuring the adjusting process, the receptionist miscounted the office supplies in the closet. She thought there were $550 worth of supplies left, but there are only $300. What is the effect of this error on the financial statements? What specific accounts are being effected? Which financial statements are incorrect? How will net income be effected? Draw T accounts if it will help you think this through. Thank you in advance!!arrow_forwardOn December 31, 2001, a bookkeeper prepared a trial balance before adjusting entries were made and omitted the balance of the following accounts: Rent, Insurance, Interest Earned, Salaries, Rent Income. The Accountant prepared the financial statements from the ledger which was correct and complete. On the Statement of Income for 2001 in the appropriate sections, the following appeared: Rent $3,600, Insurance $375, Interest Earned $116, Salaries $7,462, Rent Income $480. On the Balance Sheet of 12/31/01, the following appeared: Prepaid Rent $300, Prepaid Insurance $110, Interest Accrued on Notes Receivable $22, Salaries Accrued $400, Rent Prepaid by Sub-Tenants $40. Balance of Salaries Account:arrow_forward
- On December 31, 2001, a bookkeeper prepared a trial balance before adjusting entries were made and omitted the balance of the following accounts: Rent, Insurance, Interest Earned, Salaries, Rent Income. The Accountant prepared the financial statements from the ledger which was correct and complete. On the Statement of Income for 2001 in the appropriate sections, the following appeared: Rent $3,600, Insurance $375, Interest Earned $116, Salaries $7,462, Rent Income $480. On the Balance Sheet of 12/31/01, the following appeared: Prepaid Rent $300, Prepaid Insurance $110, Interest Accrued on Notes Receivable $22, Salaries Accrued $400, Rent Prepaid by Sub-Tenants $40. what is the Balance of Salaries Account , and the balance should be debited or credited to income statement or balance sheet?arrow_forwardOn December 31, 2001, a bookkeeper prepared a trial balance before adjusting entries were made and omitted the balance of the following accounts: Rent, Insurance, Interest Earned, Salaries, Rent Income. The Accountant prepared the financial statements from the ledger which was correct and complete. On the Statement of Income for 2001 in the appropriate sections, the following appeared: Rent $3,600, Insurance $375, Interest Earned $116, Salaries $7,462, Rent Income $480. On the Balance Sheet of 12/31/01, the following appeared: Prepaid Rent $300, Prepaid Insurance $110, Interest Accrued on Notes Receivable $22, Salaries Accrued $400, Rent Prepaid by Sub-Tenants $40. Balance of Insurance Account: How much and the entry should be debit/ credit to Income statement or Credit/debit on the balance sheet ?arrow_forwardThe following errors were made in journalizing transactions. In each case, calculate the amount of the error and indicate whether the debit or the credit column of the trial balance will be understated or overstated.arrow_forward
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