Assume that Donahue Consulting erroneously recorded the payment of $11,500 of dividends as salary expense. (a) How
Question:
(a) How would this error affect the equality of the accounting equation?
(b) How would this error affect the income statement, retained earnings statement, balance sheet, and statement of cash flows?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (14 reviews)
a The equality of the accounting equation would not be affected That is the accounting equation woul...View the full answer
Answered By
John Aketch
I am a dedicated person with high degree of professionalism, particularly in academic writing. My desire is to is to make students excel in their academic endeavor.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
Assume that Esquire Consulting erroneously recorded the payment of $30,000 of dividends as salary expense. (a) How would this error affect the equality of the accounting equation? (b) How would this...
-
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...
-
Assume that JRQ Consulting erroneously recorded the payment of $10,000 of owner withdrawals as a debit to Salary Expense. (a) How would this error affect the equality of the trial balance? (b) How...
-
The California State Auditors Office assesses the fiscal health of the states cities and posts the information on Fiscal Health of California Cities (www.auditor.ca.gov/ bsa/cities_risk_index). The...
-
The following information was obtained from the records of Martinez Corporation during 2016. 1. Manufacturing overhead was applied at a rate of 175 percent of direct labor dollars. 2. Beginning value...
-
A wealth of accounting-related information is available via the Internet. For example the Rutgers Accounting Web offers access to a great variety of sources. Address: www.accounting.rutgers.edu/ or...
-
Assuming the short rate process of Exercise 2 and risk-neutral probabilities of .5 , consider a zero-coupon bond that pays \(\$ 1\) at time \(t=2\). Find the value at time \(t=0\) of this bond in two...
-
Layla meets with her insurance agent, Trong, to discuss her insurance needs. Layla has an after-tax income of $3,800 per month, her rent is $1,200, and her other expenses total $1,500 per month....
-
Get the data set of these topologies from Internet Topology Zoo [1], download GML, GraphML files of DFN and AARNet topology. Using auto Mininet [4] convert them into .py format. Use any one topology...
-
A national retail chain with presence in all major states and cities of the country wants to introduce an offer to the customers for the shopping during the Holiday Season. The salient features of...
-
(a) How does the payment of dividends of $30,000 affect the three elements of the accounting equation? (b) Is net income affected by the payment of dividends? Explain.
-
Assume that Kilgore Realty, Inc., borrowed $80,000 from First City Bank and Trust. In recording the transaction, Kilgore erroneously recorded the receipt of $80,000 as an increase in cash, $80,000,...
-
The forces acting on part of a structure are shown in Fig. 5.22. An analysis of the forces leads to the equations Are the forces F 1 = 45 and F 2 = 28 N? 0.80F, +0.50F 0.60F 50 - 0.87F = 12
-
After a petition has been filed with the Bankruptcy Court, the United States trustee must call a meeting of creditors and a meeting of equity security holders. Briefly summarize the ramifications for...
-
In the third paragraph investigate and describe legal aspects and laws related to general management, as applicable to the Blue Nile, Inc. These should include problems (with potential legal impact),...
-
Alter Company Ltd. and Bounder Company Ltd. manufacture the same product, each under their own brand name. Alter Company Ltd.'s product represents 20% of the domestic market, and Bounder Company...
-
Benziger owns and operates a diner in Voorhees. A young couple entered and ordered burgers and fries and sat at the counter. When Benziger came out of his office in the back, he noticed that the...
-
Intellectual property laws were initially created to protect creators and foster innovation. Today, some may argue that these laws are used by large corporations to wield unfair competitive advantage...
-
To what standard of care is a specialist held? National or local?
-
Smiths Family Fashions implemented a balanced scorecard performance measurement system several years ago. Smiths is a locally owned clothing retailer with fashions for men, women, teens, and...
-
Estimate (2.1, 3.8) assuming that (2, 4) = 5, fx(2, 4) = 0.3, fy(2,4)= -0.2
-
According to a summary of the payroll of Scofield Industries Co., $600,000 was subject to the 6.0% social security tax and $740,000 was subject to the 1.5% Medicare tax. Also, $20,000 was subject to...
-
The payroll register for Gentry Company for the week ended December 17 indicated the following: Salaries.....................................................$540,000 Social security tax...
-
Thorup Company had gross wages of $200,000 during the week ended December 10. The amount of wages subject to social security tax was $180,000, while the amount of wages subject to federal and state...
-
1. A clothes dryer rates at 4000 W runs for 1.50 hours each day. it uses utility power at 240 V. how much current does the dryer use? 2. For the clothes dryer in the previous question, how much does...
-
A particle undergoing simple harmonic motion has a potential energy given by E/J=3(y/m) as it oscillates back and forth along the y-axis. When the y-coordinate of the particle is 0.75 m, what is the...
-
A 480-g iron pan is heated on a stove to a temperature of 130 C. The pan is then dropped into a partially-filled sink of water at 20 C. The final temperature reached by the sink and the pan is 40 C....
Study smarter with the SolutionInn App