Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to prepare Financial information of the company for decision making. The Finance manager was a program developer and has no Knowledge about accounting. He was asked to prepare all the financial Statements showing cash activities, detailed profit related activities, further investment and financial position of the year, for the internal auditor who is visiting the company in 2 days for company's record checking . He prepared the only following statement dated December 31, 2020 that contained a number of errors. (Note: all the values of accounts are correct) Marvelous Music Balance Sheet and Income of Company For the month ended on 31 December 2020 Account payable Admission fees revenue 3,600 33,000 20,000 1,000 3,400 18,450 700 121,250 Account receivable Cash 2,100 15,800 7,000 Capital Stock 1,000 24,000 21,550 1,200 Interest payable 180,000 Lesson Fee Revenue Earned Depreciation Expense: Music Equipment Dividends Dividends payable Income Tax payable Insurance payable Income Tax Expense Insurance expense Interest Expense Music Equipment Prepaid insurance Prepaid Rent Rent expense Salaries expense Sheet music supplies Sheet music supplies expense Utilities expense 6,150 3,000 Retained Earnings 16,500 Salaries payable 37,270 Unearned Lesson Revenue Note payable 15,000 36,600 70,000 2,000 650 780 8,000 ТОTAL 325,000 TOTAL 325,000 Instructions: (10 marks) Prepare the correct financial statement that shows the financial position of the company of this year using the data given above (using proper format) Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to prepare Financial information of the company for decision making. The Finance manager was a program developer and has no Knowledge about accounting. He was asked to prepare all the financial Statements showing cash activities, detailed profit related activities, further investment and financial position of the year, for the internal auditor who is visiting the company in 2 days for company's record checking . He prepared the only following statement dated December 31, 2020 that contained a number of errors. (Note: all the values of accounts are correct) Marvelous Music Balance Sheet and Income of Company For the month ended on 31 December 2020 Account payable Admission fees revenue 3,600 33,000 20,000 1,000 3,400 18,450 700 121,250 Account receivable Cash 2,100 15,800 7,000 Capital Stock 1,000 24,000 21,550 1,200 Interest payable 180,000 Lesson Fee Revenue Earned Depreciation Expense: Music Equipment Dividends Dividends payable Income Tax payable Insurance payable Income Tax Expense Insurance expense Interest Expense Music Equipment Prepaid insurance Prepaid Rent Rent expense Salaries expense Sheet music supplies Sheet music supplies expense Utilities expense 6,150 3,000 Retained Earnings 16,500 Salaries payable 37,270 Unearned Lesson Revenue Note payable 15,000 36,600 70,000 2,000 650 780 8,000 ТОTAL 325,000 TOTAL 325,000 Instructions: (10 marks) Prepare the correct financial statement that shows the financial position of the company of this year using the data given above (using proper format)
Expert Answer:
Answer rating: 100% (QA)
Marvelous Music Income Statement Balance sheet For the month ended 31122020 As at 31122020 Lesson Fe... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
Marvelous Music provides music lessons to student musicians. Some students pay in advance for lessons; others are billed after lessons have been provided. Advance payments are credited to an account...
-
Marvelous Music provides music lessons to student musicians. Some students pay in advance for lessons; others are billed after lessons have been provided. Advance payments are credited to an account...
-
Following is selected financial information of Kia Company for the year ended December 31, 2016. Cash used by investing activities . . . . . . . . . . $(2,000) Net increase in cash . . . . . . . . ....
-
Show that = E[(m(X) - X'p)] B = argmind (b) = (E[XX']) E[Xm(X)] = [E[XX'])E[XY]. berk Hint: To show E[Xm(X)] = E[XY] use the law of iterated expectations. then
-
The American Ceramic Society Bulletin (Feb. 2005) study of bricks that line aluminum smelter pots, You fit the simple linear regression model relating brick porosity (y) to mean pore diameter (x) to...
-
A transformer has an input of 6 V and an output of 36 V. If the input is changed to 12 V, show that the output would be 72 V.
-
Evans \& Sons, Inc., is authorized to issue one million shares of \$1 par value common stock. The company actually sells 700,000 shares at \(\$ 10\) per share. Prepare the journal entry to record the...
-
A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow...
-
Assume a large number of cardboard sheets with 23 inch width is available. From these 23" sheets, we need to cut sheets with width 6", 7", and 8" in only one direction. The demand for sheets with...
-
This step requires you to complete some exceptions testing for the Employee p-card expenditures for the year ended 12/31/2023. Required: a. How many unique employees exceeded their annual authorized...
-
How to create java program using do while loop Username: admin password: pass Using scanner Username: admin1 password: password Invalid Username or Password Username: admi9807 password: password...
-
Practice on the design of a network architecture, for administration purposes. In the company "INFOR-TRUE" that had 600 machines with Windows 8.1 and Windows 10, recently has acquired another company...
-
2. Annual coupon interest payments for LMT.GQ = $1,000 x 8.5% coupon rate = $85 Annual coupon interest payments for LMT.HH Interest = $1,000x6.15% coupon rate = $61.5 3. Current yield of the bond...
-
2. Funding helps schools meet minimum quality standardsincluding essential teaching inputs, instructional conditions, and other basic resourcesthat attract students and teachers and also provide an...
-
The Collapse of Lehman Brothers ByNICK LIOUDIS On Sept. 15, 2008,Lehman Brothersfiled for bankruptcy. That name may bring up images millions of people saw in the news for the first time: Hundreds of...
-
2. Make the following unit conversions using the Mathematical Conversions chart on page 24 of your lab manual (show your work): a. If a runner dashes 500 meters, how many feet has he run? 300 m X...
-
2. Setup: Suppose Camila went out and obtained a sample of fruit (one serving). She is interested in the mean calorie content. She believes that the distribution of calorie content is approximately...
-
I frequently use NY Times and CNN and am aware of Fox News but I never use it. I visit these sites, NY Times and CNN, a few times a week whenever I have to research something or see something on...
-
Computer Resources Inc. is a computer retailer. Computer Resources began operations in December of the current year and engaged in the following transactions during that month. Computer Resources...
-
During the current year, Rothchild, Inc., purchased two assets that are described as follows: Heavy Equipment Purchase price, $275,000. Expected to be used for 10 years, with a residual value at the...
-
One of MowTown Manufacturing's products is a small lawnmower. Two processing departments are involved in the mower's production. The deck is assembled in one department, and a second department...
-
The theory of monopolistic competition is based on three characteristics: (1) product _________, (2) many _________, and (3) free _________.
-
Monopolistic competitive sellers are price _________ and they do not regard price as given by the market. Because products in the industry are slightly different, each firm faces a(n)...
-
In the short run, equilibrium output is determined where marginal revenue equals marginal _________. The price is set equal to the _________ the consumer will pay for this amount.
Study smarter with the SolutionInn App