The following errors were made in the accounting records of Garceau Corp. in 2013 and were not discovered until 2014.
a. The journal entry to record a receipt of $3,170 for Consulting Revenue was incorrectly recorded as $7,310.
b. A $2,400 credit to Accumulated Amortization, Automobile account was incorrectly credited to Automobile account.
c. A payment of $2,800 for dividends was incorrectly debited to Salary Expense account.
d. Salary expense for 2013 of $1,650 was not recorded. It was recorded as Salary Expense in 2014 when it was paid.
e. A $1,850 credit to Unearned Revenue was posted to Accounts Receivable.
For each of the independent errors in parts (a) through (e), identify the net effect on assets, liabilities, shareholders’ equity, and net income for 2013 and 2014. Show understatements by “U,” overstatements by “O,” and no effect by “NE,” and identify their amounts.

  • CreatedJuly 08, 2015
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