The accountant for Eagle Medical Co., a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($30,000) and (b) accrued wages ($8,200). Indicate the effect of each error, considered individually, on the income statement for the current year ended March 31. Also indicate the effect of each error on the March 31 balance sheet. Set up a table similar to the following, and record your answers by inserting the dollar amount in the appropriate spaces. Insert a zero if the error does not affect theitem.
Answer to relevant QuestionsIf the net income for the current year had been $723,675 in Exercise 3-18, what would have been the correct net income if the proper adjustments had been made?At the balance sheet date, a business owes a five-year mortgage note payable of $480,000, the terms of which provide for monthly payments of $8,000. Explain how the liability should be classified on the balance sheet.Data for Oasis Health Care for January are provided in Problems 3-1, 3-2, and 3-3.Instruction1. Prepare a statement of cash flows for January.2. Reconcile the net cash flows from operating activities with the net income ...Based upon the data presented in Exercise 2, prepare a trial balance, listing the accounts in their proper order.On March 1, 2012, Larry Kinyon established Valley Realty, which completed the following transactions during the month:a. Larry Kinyon transferred cash from a personal bank account to an account to be used for the business in ...
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