COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Question
Chapter 4, Problem 1CTP
To determine
Identify the error in the financial statements of Company ZBS and prepare the rectified financial statements.
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French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income statement and balance sheet that follow and identify the errors Taylor made (he did not prepare a statement of owner’s equity).
FASHION HOUSE BEAUTY SUPPLY
Income Statement
April 30, 20X1
Revenue
Fees income $ 47,000
Expenses
Salaries expense $ 12,200
Rent expense 3,070
Repair expense 1,060
Utilities expense 1,620
Drawing 5,560
Total expenses 23,510
Net income $ 29,090
FASHION HOUSE BEAUTY SUPPLY
Balance Sheet
Month Ended April 30, 20X1
Assets Liabilities
Land $ 26,000 Accounts receivable $ 14,980
Building 46,620
Cash 18,360 Owner’s Equity
Accounts payable 5,190 French Taylor, Capital, April 1, 20X1 77,280
Total Assets $ 86,510 Total…
During 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!!
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 4 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 4 - The part of the journal entry to be recorded first...Ch. 4 - A general journal is like a(n): a. address book....Ch. 4 - Why are check and invoice numbers included in the...Ch. 4 - Prob. 1.4SRQCh. 4 - Prob. 1.5SRQCh. 4 - Prob. 1.6SRACh. 4 - Prob. 2.1SRQCh. 4 - Prob. 2.2SRQCh. 4 - What is entered in the Posting Reference column of...Ch. 4 - Prob. 2.4SRE
Ch. 4 - Prob. 2.5SRECh. 4 - Prob. 2.6SRACh. 4 - What is recorded in the Posting Reference column...Ch. 4 - Prob. 2CSRCh. 4 - Prob. 3CSRCh. 4 - Prob. 4CSRCh. 4 - Prob. 5CSRCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - What is a ledger?Ch. 4 - What is posting?Ch. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - What is a compound journal entry?Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Compound journal entries. The following...Ch. 4 - Prob. 5ECh. 4 - Recording a correcting entry. On August 22, 2019,...Ch. 4 - Prob. 1PACh. 4 - On October 1, 2019, Helen Kennedy opened an...Ch. 4 - The following journal entries were prepared by an...Ch. 4 - Prob. 4PACh. 4 - Prob. 1PBCh. 4 - Prob. 2PBCh. 4 - Prob. 3PBCh. 4 - Prob. 4PBCh. 4 - Prob. 1CTPCh. 4 - Prob. 2CTPCh. 4 - Prob. 1MFCh. 4 - Prob. 2MFCh. 4 - Prob. 3MFCh. 4 - Prob. 4MFCh. 4 - Prob. 1ED
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