The following errors were made by Classy Catering's new bookkeeper: a. A debit of $3,000 was recorded
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a. A debit of $3,000 was recorded as an account receivable instead of a note receivable.
b. A salary expense accrual in the amount of $14,400 was overlooked when the worksheet was prepared.
c. A catering service revenue accrual of $10,770 was not recorded. How would you correct these errors if they occurred:
1. After completing the worksheet but before the financial statements were prepared (the accounts have not yet been closed)? Adjust only the accounts affected. (Do not use reversing entries for the corrections.)
2. After closing entries were completed?
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...
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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