Unadjusted net income | 30000 | |
Adjustments: | ||
a. Insurance expense overstated | 4000 | |
b. Sales revenue overstated | (1000) | |
c. Supplies expense overstated | 750 | |
d. Interest expense understated | (600) | =20000*12%*3/12 |
Adjusted net income | 33150 |
During the course of your examination of the financial statements of the Hales Corporation for the...
During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following: An insurance policy covering three years was purchased on January 1, 2021, for $3,300. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item. During 2021, the company received a $600 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $600 was...
During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following: a. An insurance policy covering three years was purchased on January 1, 2021, for $2,400. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item. b. During 2021, the company received a $525 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The...
Record journal entry for each. During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following: a. An insurance policy covering three years was purchased on January 1, 2021, for $3,000. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item. b. During 2021, the company received a $575 cash advance from a customer for merchandise to be manufactured...
Exercise 2-17 (Algo) Accrual accounting income determination (LO2-5, 2- During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following: a. An insurance policy covering three years was purchased on January 1, 2021, for $5,400. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item b. During 2021, the company received a $775 cash advance from a customer for...
9. During the course of During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2020, you discover the following: An insurance policy covering three years was purchased on January 1, 2020 for $3,000. The entire amount was debited to insurance expense and no adjusting entry was made for this item. • There were no supplies listed in the balance sheet under assets as all supplies are expensed immediately when...
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $90,000. 1. An insurance policy covering 12 months was purchased on October 1, 2021, for $18,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2. During 2021, the company received a $3,000 cash advance from a customer...
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $92,000. 1. An insurance policy covering 12 months was purchased on October 1, 2021, for $19,200. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2. During 2021, the company received a $3,200 cash advance from a customer...
19 During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $85,000. 8 00:42:20 1. An insurance policy covering 12 months was purchased on October 1, 2021, for $15,000. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2. During 2021, the company received a $2,500 cash advance...
There were no supplies list in the balance sheet under assets. however you discover that supplies costing $750 were on hand at December 31? E 2-16 External transactions and adjusting entries • LO2-3, LO2-6 In ad Res Dete The is the E2-20 Worksheet • Appendix 2A red rent revenue? The following transactions occurred during 2021 for the Beehive Honey Corporation: Feb. 1 Borrowed $12,000 from a bank and signed a note. Principal and interest at 10% will be paid on...
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2021, you come across several items needing further consideration. Currently, net income is $96,000. 1. An insurance policy covering 12 months was purchased on October 1, 2021, for $21,600. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2021. 2. During 2021, the company received a $3,600 cash advance from a customer...