Question: On December 31 2014 Mica Company prepared a statement of

On December 31, 2014, Mica Company prepared a statement of earnings and a statement of financial position but failed to take into account four adjusting entries. The statement of earnings, prepared on this incorrect basis, reflected pretax earnings of $ 30,000. The statement of financial position (before the effect of income taxes) reflected total assets, $ 90,000; total liabilities, $ 40,000; and shareholders’ equity, $ 50,000. The data for the four adjusting entries follow:
a. Depreciation of $ 9,000 for the year on equipment that cost $ 75,000 was not recorded.
b. Wages amounting to $ 17,000 for the last three days of December 2014 were not paid and not recorded (the next pay date is January 10, 2015).
c. An amount of $ 9,600 was collected on December 1, 2014, for rental of office space for the period December 1, 2014, to February 28, 2015. The $ 9,600 was credited in full to deferred rent revenue when collected.
d. Income taxes were not recorded. The income tax rate for the company is 30 percent.
Complete the following tabulation to correct the financial statements for the effects of the four errors (indicate deductions with parentheses):

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