On December 31, 2011, Quinlan-Cohen Company prepared an income statement and balance sheet and failed to take
Question:
a. Depreciation of $16,000 for the year on equipment that cost $170,000 was not recorded.
b. Wages amounting to $34,000 for the last three days of December 2011 were not paid and not recorded (the next payroll will be on January 10, 2012).
c. Rent revenue of $9,600 was collected on December 1, 2011, for office space for the period December 1, 2011, to February 28, 2012. The $9,600 was credited in full to Unearned Rent Revenue when collected.
d. Income taxes were not recorded. The income tax rate for the company is 30 percent.
Required:
Complete the following tabulation to correct the financial statements for the effects of the four errors (indicate deductions withparentheses): Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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