Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the...
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit to Cash, $300,000, and a credit to Fee Earned, $300,000. (A) How would this error affect the equity of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
Homework Answers
The Actual entry for given transaction is Debit to Cash , Credit to Loan from Bank account for $300,000.
(A) As far as Trail Balance concerned, the error would not affect the equity of the trial balance because there is equal debit and credit amount (Cash Dr $300,000 and Revenue Earned Cr $300,000)
(B). The Error Results Increase of Income in Income Statement
Increase in Retained Earnings.
Liabilities Section of Balance Sheet will be Understated, Shareholders's Equity Section is Overstated.
Add Answer to:
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia
First Bank and Trust. In recording the...
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the...
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroncousl recorded the receipt as a debit to Cash,$300,000, and a credit to Fee Earned, $300,000. (A) How would this error affect the equity of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
Assume that Muscular Consulting erroneously recorded the payment of $7,500 of dividends as a debit to...
Assume that Muscular Consulting erroneously recorded the payment of $7,500 of dividends as a debit to Salary Expense. (A) How would this error affect the equality of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
Requirement 1: ABC Company adheres to a policy of depositing all cash receipts in a bank...
Requirement 1: ABC Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand. (a) Assuming that no errors occurred during journalizing or posting, what caused this unusual balance? (b) Is the $1,850 credit balance in the cash account an asset, a liability, owner's equity, a revenue, or an expense?...
Requirement 1: ABC Company adheres to a policy of depositing all cash receipts in a bank...
Requirement 1: ABC Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand. (a) Assuming that no errors occurred during journalizing or posting, what caused this unusual balance? (b) Is the $1,850 credit balance in the cash account an asset, a liability, owner's equity, a revenue, or an expense?...
The following data were accumulated for use in reconciling the bank account of Creative Design Co....
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $20,320. Cash balance according to the bank statement at August 31, $21,160. Checks outstanding, $4,120. Deposit in transit, not recorded by bank, $3,310. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $60. a. Prepare a...
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers...
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31 $22,020. Cash balance according to the bank statement at July 31, $22,940. Checks outstanding, $4,470. Deposit in transit, not recorded by bank, $3,590. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $50. a. Prepare a...
eBook Show Me How Calculator E Print Item Bank Reconciliation The following data were accumulated for...
eBook Show Me How Calculator E Print Item Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $20,030. 2. Cash balance according to the bank statement at August 31, $21,160. 3. Checks outstanding, $4,070. 4. Deposit in transit, not recorded by bank, $3,260. 5. A check for $480 in payment of an account was erroneously recorded in...
reparing a bank reconciliation and recording adjustments L06 Problem 7-7B Preparing CHECK FIGURE: 1. The following...
reparing a bank reconciliation and recording adjustments L06 Problem 7-7B Preparing CHECK FIGURE: 1. The following informa 4 The December 3 h. Cheque #3115 for $1 FIGURE: 1. Adjusted book balance = $35,775 information was available to reconcile Frogbox Moving's book Cash balance with its bank state- went balance as of December 31, 2020: December 31 Cash balance according to the accounting records was $16,562, and the bank statement balance for that date was $36,780. #3115 for $1,119 and cheque...
1. Eaned $16,200 of cash revenue. 2. Borrowed $12,000 cash from the bank. 3. Adjusted the...
1. Eaned $16,200 of cash revenue. 2. Borrowed $12,000 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, Issued on September 1, 2018 had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of b. What amount of cash was paid for interest in 2018? c. Use a horizontal statements model to show how each event affects the balance sheet, income statement,...
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers...
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $17,490. 2. Cash balance according to the bank statement at July 31, $18,520. 3. Checks outstanding, $3,550. 4. Deposit in transit, not recorded by bank, $2,850. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for...
Assume that Sunshine Reality Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroncousl recorded the receipt as a debit to Cash,$300,000, and a credit to Fee Earned, $300,000. (A) How would this error affect the equity of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
Assume that Muscular Consulting erroneously recorded the payment of $7,500 of dividends as a debit to Salary Expense. (A) How would this error affect the equality of the trial balance? (B) How would this error affect the income statement, retained earnings statement, and balance sheet?
eBook Show Me How Calculator E Print Item Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $20,030. 2. Cash balance according to the bank statement at August 31, $21,160. 3. Checks outstanding, $4,070. 4. Deposit in transit, not recorded by bank, $3,260. 5. A check for $480 in payment of an account was erroneously recorded in...
reparing a bank reconciliation and recording adjustments L06 Problem 7-7B Preparing CHECK FIGURE: 1. The following informa 4 The December 3 h. Cheque #3115 for $1 FIGURE: 1. Adjusted book balance = $35,775 information was available to reconcile Frogbox Moving's book Cash balance with its bank state- went balance as of December 31, 2020: December 31 Cash balance according to the accounting records was $16,562, and the bank statement balance for that date was $36,780. #3115 for $1,119 and cheque...
1. Eaned $16,200 of cash revenue. 2. Borrowed $12,000 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, Issued on September 1, 2018 had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of b. What amount of cash was paid for interest in 2018? c. Use a horizontal statements model to show how each event affects the balance sheet, income statement,...
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $17,490. 2. Cash balance according to the bank statement at July 31, $18,520. 3. Checks outstanding, $3,550. 4. Deposit in transit, not recorded by bank, $2,850. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for...
Most questions answered within 3 hours.
-
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 10 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 4 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 17 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 26 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 25 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 27 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 28 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 32 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 48 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 49 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago