On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was...
On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was carried in the balance sheet at $91,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account.
Required:
1. & 2. Prepare the following journal entries
(Ignore income taxes). (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
1. Prepare the journal entry to correct the error assuming it is discovered before the books are adjusted or closed in 2018.
2. Prepare the journal entry to correct the error assuming it is not discovered until early 2019.
Homework Answers
Answer-
Correction entry before books are closed for 2018:
| Investment A/c ($132,000-$91,000) | Dr | 41000 | |
| Gain on sale of Investment A/c | Cr | 41000 |
Correction entry after books are closed for 2018:
| Investment A/c. | Dr | 41000 | |
| Retained Earning A/c | Cr | 41000 |
Add Answer to:
On December 12, 2018, an equity investment costing $96,000 was
sold for $132,000. The investment was...
On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was...
On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was carried in the balance sheet at $78,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account Required: 1. & 2. Prepare the following journal entries ignore Income taxes). (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.)
On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was...
On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was carried in the balance sheet at $79,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
In 2018, the internal auditors of KJI Manufacturing discovered the following material errors made in prior...
In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
Equipment was purchased on June 30, 2016, for $175,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value.
On March 31, 2017, $40,000 was paid to a contractor to
landscape the area around a manufacturing plant including the
installation of a sprinkler system. The expenditure...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $461,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $61,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $25,500 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not received until 2019 and was incorrectly omitted from the...
Journal Entries Include 1. Investment In Seida Cash 2. Investment in Seida Equity Income in Investment...
Journal Entries Include
1. Investment In Seida
Cash
2. Investment in Seida
Equity Income in Investment in Seida
3. Equity Income in Investment in Seida
Investment in Seida
4. Dividend receivable
Investment in Seida
5. Cash
Dividend Receivable
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $450,000. Included in...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $450,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $50,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $20,000 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not received until 2019 and was incorrectly omitted from the...
5. Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2018, Rhone-Me...
5.
Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2018, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost $820,000 to manufacture and has an expected useful life of six years. Its normal sales price is $875,879. The expected residual value of $40,000 at December 31, 2022, is not guaranteed. Equal payments under the...
In 2018, Internal auditors discovered that PKE Displays, Inc., had debited an expense account for the...
In 2018, Internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $444,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be six years with no residual value. Straight-line depreciation is used by PKE. Ignoring income taxes, prepare the journal entry PKE will use to correct the error (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) No Event...
In 2018, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $264,000 cost of a...
In 2018, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $264,000 cost of a machine purchased on January 1, 2015. The machine’s useful life was expected to be four years with no residual value. Straight-line depreciation is used by PKE. Ignoring income taxes, prepare the journal entry PKE will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Question 27 A partial trial balance of Skysong Corporation is as follows on December 31, 2018,...
Question 27 A partial trial balance of Skysong Corporation is as follows on December 31, 2018, Dr. Cr. $2.500 $1,500 Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable 5,400 90,500 13,900 Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2018, totaled $1,000. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,000. 3. The...
On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was carried in the balance sheet at $78,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account Required: 1. & 2. Prepare the following journal entries ignore Income taxes). (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.)
In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
Equipment was purchased on June 30, 2016, for $175,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value.
On March 31, 2017, $40,000 was paid to a contractor to
landscape the area around a manufacturing plant including the
installation of a sprinkler system. The expenditure...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $461,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $61,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $25,500 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not received until 2019 and was incorrectly omitted from the...
Journal Entries Include
1. Investment In Seida
Cash
2. Investment in Seida
Equity Income in Investment in Seida
3. Equity Income in Investment in Seida
Investment in Seida
4. Dividend receivable
Investment in Seida
5. Cash
Dividend Receivable
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant...
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $450,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $50,000. The purchase was recorded and paid for in 2019. Another supplier shipment costing $20,000 was correctly recorded as a purchase in 2018. However, the merchandise, shipped FOB shipping point, was not received until 2019 and was incorrectly omitted from the...
5.
Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2018, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost $820,000 to manufacture and has an expected useful life of six years. Its normal sales price is $875,879. The expected residual value of $40,000 at December 31, 2022, is not guaranteed. Equal payments under the...
In 2018, Internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $444,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be six years with no residual value. Straight-line depreciation is used by PKE. Ignoring income taxes, prepare the journal entry PKE will use to correct the error (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) No Event...
Question 27 A partial trial balance of Skysong Corporation is as follows on December 31, 2018, Dr. Cr. $2.500 $1,500 Supplies Salaries and wages payable Interest Receivable Prepaid Insurance Unearned Rent Interest Payable 5,400 90,500 13,900 Additional adjusting data: 1. A physical count of supplies on hand on December 31, 2018, totaled $1,000. 2. Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,000. 3. The...
Most questions answered within 3 hours.
-
Hello, can someone please help me answer this question?
How much heat is absorbed by a...
asked 12 minutes ago -
A business executive has the option to invest money in two
plans: Plan A guarantees that...
asked 13 minutes ago -
. A marketing researcher conducted a survey of 25 shoppers
randomly selected at the local mall...
asked 28 minutes ago -
Create an comprehensive response to the
following:
Antimicrobial agents work on a multitude of microbes (bacteria,...
asked 30 minutes ago -
6.13 LAB: Step counter. Section 6.3.
A pedometer treats walking 2,000 steps as walking 1 mile....
asked 25 minutes ago -
(14.2) A block of mass m = 10 kg riding on a frictionless
horizontal plane is...
asked 28 minutes ago -
Use any search engine to search for articles about Starbucks
partnership with Tata Companies in India...
asked 27 minutes ago -
Let’s say that for some reason Bank Excess Reserves suddenly
increase sharply. What effect would this...
asked 36 minutes ago -
Given:
Curent Assets: $600,000
Total Assets: $2,600,000
Current Liabilities: $500,000
Total Liabilities: $1,700,000
What is the...
asked 41 minutes ago -
1. What is a “Bankster”? What is insider trading? Why is it
illegal?
2. What is...
asked 39 minutes ago -
A transverse wave on a cord is given by
D(x,t)=0.18sin(2.7x−61.0t), where Dand x are in m...
asked 46 minutes ago -
ASSIGNMENT
ANSWER ANY TWO OF THE FOLLOWING IN 2-3 PARAGRAPHS OF EACH
QUESTION.
1: Where is...
asked 44 minutes ago