Determine the effect of the following errors on a companys total revenue, total expenses, and net income.
Question:
Determine the effect of the following errors on a company’s total revenue, total expenses, and net income. Indicate the effect by writing O for Overstated (too much), U for Understated (too little), or NA for NotAffected.
Transcribed Image Text:
Total Revenue Expenses Income Total Net Transactions Example: A check for $325 was written to pay on account. The accountant debited Rent Expense for $325 and credited Cash for $325. a. $420 was received on account from NA customers. The accountant debited Cash for $420 and credited Professional Fees for $420 b. The owner withdrew $1,200 for personal use. The accountant debited Wages Expense for $1,200 and credited Cash for $1,200 c. A check was written for $1250 to pay the rent. The accountant debited Rent Expense for $1,520 and credited Cash for $1,520 d. $1,800 was received on account from customers. The accountant debited Cash for $1,800 and credited the Capital account for 1,800 A check was written for $225 to pay the phone bill received and recorded earlier in the month. The accountant debited Phone Expense for $225 and credited Cash for $225 e.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (13 reviews)
TOTAL TOTAL NET DESCRIPTION REVENUE EXPENSES INCOME 0 Example A check for 325 was wri...View the full answer
Answered By
Sigei Kipngeno
I am a professional writer with more than 2 years of writing experience. I will always deliver a grade A paper with zero plagiarism . Thanks in advance.
4.70+
175+ Reviews
311+ Question Solved
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
Question Posted:
Students also viewed these Accounting questions
-
Indicate the effect of each of the following errors on a companys balance sheet and income statement of the current and succeeding years: a. The ending inventory is overstated. b. Merchandise...
-
Indicate the effect of each of the following errors on the following balance sheet and income statement items for the current and succeeding years: beginning inventory, ending inventory , accounts...
-
The Flamingo Corporation is trying to determine the effect of its inventory turnover ratio and DSO on its cash flow cycle. Flamingos 2015 sales (all on credit) were $180,000, and it earned a net...
-
1. Give 3 examples of well-defined sets. 2. Name two subsets of the set of whole numbers using both the listing method and the rule method. 3. Let B [1, 3, 5, 7, 9}. List all the possible subsets of...
-
If the risk-free rate is 5%, beta is 0.8, and the market risk premium is 6 percent, what is the required return on equity according to the CAPM?
-
Why do increases in the real interest rate lead to decreases in net exports, and vice versa?
-
If \(r=0.83\) for one set of paired data and \(r=\) 0.60 for another, compare the strengths of the two relationships.
-
Neighbor Software Corp. has assembled the following data for the year ended December 31, 2010: Requirement 1. Prepare Neighbor Software Corp. s statement of cash flows using the indirect method to...
-
In the context of heat exchangers, how does the design and optimization of finned surfaces influence overall heat transfer performance, particularly in high-temperature applications like gas turbine...
-
In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who: turned 18...
-
The bookkeeper for Nevado Company has prepared the following trial balance: The bookkeeper has asked for your help. In examining the company's journal and ledger, you discover the following errors....
-
Journalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for $ 680 was journalized as a cash purchase of store equipment...
-
Suppose x = the number of courses a randomly selected student at a certain university is taking. The probability distribution of x appears in the following table: a. What is P( x = 4)? b. What is P(...
-
2.1 In the diagram below Q is 30 C and Q2 is -15 C. Q 120 mm 4 A B Calculate the resultant electric field due to Q and Q at point P (magnitude and direction). P 60.0 mm
-
Standing waves are produced on a string at the two consecutive resonant frequencies 120 and 160 Hz. If the string has a length of 3.0 m, what is the distance between two adjacent nodes at the...
-
A certain car is capable of accelerating at a rate of 0.57 m/s2. How long does it take for this car to go from a speed of 35 mi/h to a speed of 39 mi/h? S Need Help? Submit Answer Read It Watch It
-
How do responsibility and accountability impact on a workers role? Explain
-
(a) A sphere is attached to a string of length L = 22.4 cm and suspended from the ceiling, as shown in the figure. A uniform electric field points to the right in the figure. When 8 = 16.8, the...
-
What kinds of unstructured data or big data might JCC want to gather in the future?
-
Find the image of x = k = const under w = 1/z. Use formulas similar to those in Example 1. y| y = 0 -21 -2 -1 -1, /1 12 T -1 -1 y= -2 x =0
-
Olympiakos SA provides outsourcing services and advice to both government and corporate clients. For costing purposes, Olympiakos classifies its departments into two support departments...
-
The following misstatements occurred in the records of ICW Company. For each misstatement, suggest a control to prevent it from happening. 1. A bill from a supplier was paid even though the shipment...
-
Four types of internal control activities are listed below. Describe each of them. 1. Segregation of duties 2. Authorization procedures and related responsibilities 3. Adequate documents and records...
-
In the left column below, four different internal control procedures are described. In the right column, the four basic types of internal control activities are listed. Match the procedures with the...
-
Jamie Lee is attracted to the low monthly payment advertised for a vehicle lease. She may well be able to afford a more expensive car than she originally thought. Jamie Lee really needs to think this...
-
Explain virtual hosting and how to use either name-based or IP-based virtual hosting.?
-
Discuss the role of literary allusion in satire as a means of subverting conventions and critiquing societal norms.
Study smarter with the SolutionInn App