Homework Answers
In transaction A, Prepaid rent is not recorded and Rent expense is recorded with full amount. Prepaid rent is an asset which is understated and rent expense will reduce the income because of which net income will be understated.
In transaction B, service revenue is not recognised. Unearned service revenue under liabilities will be overstated and net income will be understated.
| Assets | Liabilities | Equity | Net Income |
| U100000 | O100000 | NE | U200000 |
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Because the bookkeeper did not record either of the adjusting entries associated with Transactions A and...
You ve been hired by Desert Company to review several transactions that were omitted as Adjusting...
You ve been hired by Desert Company to review several transactions that were omitted as Adjusting Entries at December 31, 2019, as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below. record the appropriate AJE that would have been required at December 31st. Transactions A. On May 1st, 2019, Desert paid $180,000 in advance for 18 months rent on its new warehouse. At the time, Desert debited a Nominal Account, B....
cannot figure out how to solve for the cumulative effects. any help/answers with steps would be...
cannot figure out how to solve for the cumulative effects. any
help/answers with steps would be appreciated
0.57 2 pts You've been hired by Desert Company to review several transactions that were omitted as Adjusting Entries at December 31, 2019, as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE that would have been required at December 31st. Transactions: A. On May 1st, 2019, Desert paid $180,000...
the total of cummulatice effect of errors has one part that is wrong as i got...
the total of cummulatice effect of errors has one part that is
wrong as i got a 3/4... please tell me the correct answer for
either assets, liabilities, equity, or net income
Question 1: Transaction A: Previously rent expense is debited. So, this expense is for 18 months. Expense relating to up to december is to be taken in to income statement. So only for 8 months rent is debited. to reduce the previous debit, now credit the rent expense....
please show work. 2. In 2019, the bookkeeper for a company mistakenly recorded an entry for...
please show work.
2. In 2019, the bookkeeper for a company mistakenly recorded an entry for a two-year contract as cash basis rather than accrual basis and made no adjustment at year-end. The mistake was not caught and resulted in the following errors: Assets 12/31/19 NE Assets 12/31/20 NE Assets 12/31/21 NE Liabilities 12/31/19 NI 2019 Equity 12/31/19 Understated - $765,000 Overstated - $765,000 Overstated - $765,000 Liabilities 12/31/20 NI 2020 Equity 12/31/20 Understated - $225,000 Understated - $540,000 Overstated...
Partial Question 4 1.75/3 pts You've been hired by Pitchfork, Inc. to review several transactions that...
Partial Question 4 1.75/3 pts You've been hired by Pitchfork, Inc. to review several transactions that were omitted as adjusting journal entries at December 31, 20x1, which is Pitchfork's year-end. For each of the transactions listed below, record the appropriate AJE that should have been recorded at December 31st. Transactions: 1. On November 1, 20x1, Pitchfork received a $25,000 advance payment from a customer for services to be performed evenly over the next 5 months. The original entry was credited...
B. Below are 4 adjusting journal entries (AJEs) that another firm, Wolverine, failed to make at...
B. Below are 4 adjusting journal entries (AJEs) that another firm, Wolverine, failed to make at year end. For each entry NOT MADE indicate the effect that each omitted AJE would have on the Wolverine's financial statements for the year ended 12/31/2019. Use O for overstated, U for understated, and NE for no effect. Organize your answer in tabular form, using the column headings shown below and provided in the worksheet titled "Part A, Question B." Example 0: At year...
Is this correct? In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries...
Is this correct?
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: O (Click to view the adjusting entries.) Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example. Begin by determining the effects for adjusting entries b. and c. and then determine the effects for...
1. At the end of 2018, ABC Company did not make the adjusting entry to record...
1. At the end of 2018, ABC Company did not make the adjusting entry to record depreciation of building. Indicate the effect of this error on 2018 Net Income, Assets, Liabilities, and Owner’s Equity (on December 31, 2018) respectively. Use O for overstate, U for understate, NE for no effect. State your answer in the same order as the items underlined in the question: 2. On 3/31/2018, ABC company borrowed $1,000,000 from the bank with an annual interest rate of...
Exercise 3-53 (Algorithmic) Adjusting Entries Reynolds Computer Service offers data processing services to retail clothing stores....
Exercise 3-53 (Algorithmic) Adjusting Entries Reynolds Computer Service offers data processing services to retail clothing stores. The following data have been collected to aid in the preparation of adjusting entries for Reynolds Computer Service for 2019: a. Computer equipment was purchased from IBM in 2016 at a cost of $540,000. Annual depreciation is $125,900. b. A fire insurance policy for a 2-year period beginning September 1, 2019, was purchased from Good Hands Insurance Company for $12,000 cash. The entire amount...
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following...
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: a. Office supplies on hand $100. b. Accrued revenues, $5,000. c. Accrued interest expense, $250. d. Depreciation, $800. e. Unearned revenue that has been carned, $550. Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example, Adjustment...
You ve been hired by Desert Company to review several transactions that were omitted as Adjusting Entries at December 31, 2019, as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below. record the appropriate AJE that would have been required at December 31st. Transactions A. On May 1st, 2019, Desert paid $180,000 in advance for 18 months rent on its new warehouse. At the time, Desert debited a Nominal Account, B....
cannot figure out how to solve for the cumulative effects. any
help/answers with steps would be appreciated
0.57 2 pts You've been hired by Desert Company to review several transactions that were omitted as Adjusting Entries at December 31, 2019, as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE that would have been required at December 31st. Transactions: A. On May 1st, 2019, Desert paid $180,000...
the total of cummulatice effect of errors has one part that is
wrong as i got a 3/4... please tell me the correct answer for
either assets, liabilities, equity, or net income
Question 1: Transaction A: Previously rent expense is debited. So, this expense is for 18 months. Expense relating to up to december is to be taken in to income statement. So only for 8 months rent is debited. to reduce the previous debit, now credit the rent expense....
please show work.
2. In 2019, the bookkeeper for a company mistakenly recorded an entry for a two-year contract as cash basis rather than accrual basis and made no adjustment at year-end. The mistake was not caught and resulted in the following errors: Assets 12/31/19 NE Assets 12/31/20 NE Assets 12/31/21 NE Liabilities 12/31/19 NI 2019 Equity 12/31/19 Understated - $765,000 Overstated - $765,000 Overstated - $765,000 Liabilities 12/31/20 NI 2020 Equity 12/31/20 Understated - $225,000 Understated - $540,000 Overstated...
Partial Question 4 1.75/3 pts You've been hired by Pitchfork, Inc. to review several transactions that were omitted as adjusting journal entries at December 31, 20x1, which is Pitchfork's year-end. For each of the transactions listed below, record the appropriate AJE that should have been recorded at December 31st. Transactions: 1. On November 1, 20x1, Pitchfork received a $25,000 advance payment from a customer for services to be performed evenly over the next 5 months. The original entry was credited...
B. Below are 4 adjusting journal entries (AJEs) that another firm, Wolverine, failed to make at year end. For each entry NOT MADE indicate the effect that each omitted AJE would have on the Wolverine's financial statements for the year ended 12/31/2019. Use O for overstated, U for understated, and NE for no effect. Organize your answer in tabular form, using the column headings shown below and provided in the worksheet titled "Part A, Question B." Example 0: At year...
Is this correct?
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: O (Click to view the adjusting entries.) Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example. Begin by determining the effects for adjusting entries b. and c. and then determine the effects for...
Exercise 3-53 (Algorithmic) Adjusting Entries Reynolds Computer Service offers data processing services to retail clothing stores. The following data have been collected to aid in the preparation of adjusting entries for Reynolds Computer Service for 2019: a. Computer equipment was purchased from IBM in 2016 at a cost of $540,000. Annual depreciation is $125,900. b. A fire insurance policy for a 2-year period beginning September 1, 2019, was purchased from Good Hands Insurance Company for $12,000 cash. The entire amount...
In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations: a. Office supplies on hand $100. b. Accrued revenues, $5,000. c. Accrued interest expense, $250. d. Depreciation, $800. e. Unearned revenue that has been carned, $550. Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as an example, Adjustment...
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