Error(a) Error(b) Over- Under- Over- Under- stated stated stated Stated Revenue for the year 1. would be $- $- $- Expenses for the year 2. would be $- $- Net income for the year 3. would be $- $- Assets at July 31 would 4. be $- $- $- $- Liabilities at July 31 5. would be $- Owner's equity at July 31 6. would be $- $- $- $-
Error(a) Error(b) Over- Under- Over- Under- stated stated stated Stated Revenue for the year 1. would be $- $- $- Expenses for the year 2. would be $- $- Net income for the year 3. would be $- $- Assets at July 31 would 4. be $- $- $- $- Liabilities at July 31 5. would be $- Owner's equity at July 31 6. would be $- $- $- $-
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 2.6P: Financial statements Alpine Realty. Inc., organized July 1. 20Y8, is operated by Angela Griffin. How...
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Effects of errors on financial statements
The accountant for Healthy Life Company, a medical services consulting
firm, mistakenly omitted
earned during the year ($34,900) and (b) accrued wages ($12,770).
Indicate 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. Set up a table similar to the
following, and record your answers by inserting the dollar amount in the
appropriate spaces. Insert a zero if the error does not affect the item.
![Error(a)
Error(b)
Over-
Under-
Over-
Under-
stated
stated
stated
Stated
Revenue for the year
1.
would be
$-
$-
$-
Expenses for the year
2.
would be
$-
$-
Net income for the year
3.
would be
$-
$-
Assets at July 31 would
4.
be
$-
$-
$-
$-
Liabilities at July 31
5.
would be
$-
Owner's equity at July 31
6.
would be
$-
$-
$-
$-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87d4b040-a0df-4bbd-acc2-503ff536f4ea%2Fb5f4fe0f-a28b-4292-bd89-3814a9fe2a04%2F7z1cl2g_processed.png&w=3840&q=75)
Transcribed Image Text:Error(a)
Error(b)
Over-
Under-
Over-
Under-
stated
stated
stated
Stated
Revenue for the year
1.
would be
$-
$-
$-
Expenses for the year
2.
would be
$-
$-
Net income for the year
3.
would be
$-
$-
Assets at July 31 would
4.
be
$-
$-
$-
$-
Liabilities at July 31
5.
would be
$-
Owner's equity at July 31
6.
would be
$-
$-
$-
$-
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