Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described...
Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows:
-
(1) Merchandise costing $5,000 was sold to a customer for $10,000 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory. Assume the periodic inventory system is used.
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(2) A machine with a five-year life was purchased on January 1, 2020. The machine cost $30,000 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation.
Required:
Prepare appropriate journal entries (assume the 2021 books have not
been closed). Ignore income taxes. (If no entry is required
for a transaction/event, select "No journal entry required" in the
first account field.
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Lindy Company's auditor discovered two errors. No errors were
corrected during 2020. The errors are described...
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Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
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PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! During 2021, WMC Corporation...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE
THANK YOU!
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In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $46,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors...
In 2021, the controller of Sytec Corporation discovered that $74,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $46,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required: 1. Determine the effect of the errors...
During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: understated by 2019 $138,000 168,000 overstated by 2020 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (lgnore income taxes) 2. Prepare a journal entry to correct the errors. Complete this question by entering your answers in the tabs...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
Recording Error Corrections Related to Equipment On April 1, 2021, the following 2020 errors were discovered after the 2020 financial statements were issued. a. Equipment purchased on January 1, 2020, with a cost of $28,000, salvage value of $1,680, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment b. In 2020, fully depreciated equipment with an original cost of $35,000 and no salvage value was sold for...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE
THANK YOU!
During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 2020 understated by overstated by $129,000 159,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct...
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