Chapter 4, Problem 27P

Sandhill Company discovered the following errors made in January 2020. 1.   A payment of Salaries and Wages Expense of $360 was debited to Equipment and credited to Cash, both for $360. 2.   A collection of $1,100 from a client on account was debited to Cash $110 and credited to Service Revenue $110. 3.   The purchase of equipment on account for $270 was debited to Equipment $800 and credited to Accounts Payable $800. (a)     Correct the errors by reversing the incorrect entry and preparing the correct entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount   enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount   (To reverse the incorrect entry)       enter an account title to record the…

The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $28,670 and credits are $67,915. What does this information mean to the accountant? a.net income of $39,245 b.the accounts are out of balance, indicating an error has been made c.net loss of $39,245 d.the accounts have not been updated

6-An audit of an entity records for its first year of operations determined that the following errors were made at the balance sheet date. Failed to accrue 50000 interest expenses failed to record depreciation expense on office equipment of 80000 failed to amortize prepaid rent expense of 100000 failed to defer recognition of prepaid advertising expense  of 60000. The net effect of these errors was to overstate net profit by A. 130000 B. 170000 C. 230000 D. 290000

A firm purchased telephone equipment for cash. By mistake, the accountant debitedUtilities Expense instead of Office Equipment. The error was discovered after the dataposted. The correcting entry should contain:

[The following information applies to the questions displayed below.]   Megan Company (not a corporation) was careless about its financial records during its first year of operations, 2017. It is December 31, 2017, the end of the annual accounting period. An outside CPA has examined the records and discovered numerous errors, all of which are described here. Assume that each error is independent of the others Analyze each error and indicate its effect on 2017 and 2018 net income, assets, and liabilities if not corrected. Do not assume any other errors. Use these codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect. The first transaction is used as an example. Wages earned by employees during 2017 not recorded or paid in 2017 but recorded and paid in 2018, $500. (Enter all values as positive values.) I'm unsure why my answer is incorrect.. Thanks.

The night manager of Çiğli Transportation Service, who had no accounting background, prepared the following balance sheet for the company at February 28, 2011. The dollar amounts were taken directly from the company’s accounting records and are correct. However, the balance sheet con- tains a number of errors in its headings, format, and the classification of assets, liabilities, and owners’ equity.

The following trial balance of Marigold Corporation does not balance. MARIGOLD CORPORATIONTRIAL BALANCEJUNE 30, 2020     Debit   Credit Cash     $7,271           Accounts Receivable     7,200           Supplies     3,745           Equipment     7,400           Accounts Payable             $8,484   Common Stock             13,500   Retained Earnings             3,000   Service Revenue             3,182   Office Expense     4,460                 $30,076       $28,166   An examination of the ledger shows these errors. 1.   Cash received from a customer on account was recorded (both debit and credit) as $1,270 instead of $1,720. 2.   The purchase on account of a computer costing $3,100 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3.   Services were performed on account for a client, $1,900, for which Accounts Receivable was debited $1,900 and Service Revenue was credited $190. 4.   A payment of $90 for…

Listed below are the current Accounting Assumptions and Principles                                   Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle             Going Concern Assumption   Revenue Recognition Principle   Full Disclosure Principle             Time Period Assumption   Matching Principle                                       Required:                     For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.                     h. Nixon Corp records and maintains their books at cost and/or current value, not at a liquidated value.             Violation: (Yes/No)       Applicable Assumption/Principle:                 i. Wages of $4,000 related to the last two days of July, were recorded as expense in July even though they were paid in August.             Violation: (Yes/No)       Applicable…

The following is a statement showing the financial status of the comapany at any given time A. Trading account B. Profit & Loss statement C. Balance Sheet D. Cash Book Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.