Taylor Corporation discovered in 2019 that it had incorrectly recorded in 2018 a cash payment of $70,000

Question:

Taylor Corporation discovered in 2019 that it had incorrectly recorded in 2018 a cash payment of $70,000 for utilities expense. The correct amount of the utilities expense was $35,000.

1. Determine the effect of the error on the accounting equation in 2018.

2. How should this error be reported in the 2019 financial statements?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Horngrens Accounting

ISBN: 9780135359785

11th Canadian Edition Volume 2

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood

See More Books

Question Posted: Aug 06, 2021 12:49 AM

See More Questions

Taylor Corporation discovered in 2017 that it had incorrectly recorded in 2016 a cash payment of $50,000 for utilities expense. The correct amount of the utilities expense was $60,000. Requirements...
Wells Corporation discovered in 2015 that it had incorrectly recorded $ 50,000 of utilities expense for 2014. The correct amount of the utilities expense was $ 30,000. Requirements 1. Determine the...
A business makes a cash payment of $12,000 to a creditor. Which of the following accounts is credited? A. Accounts Payable B. Accounts Receivable C. Cash D. Bank
The annual revenues associated with several large apartment complexes are $300, $450, $425, $50, $75, and $150 for years 0, 1, 2, 3, 4, and 5, respectively. Determine the net cash flow and whether...
Life expectancy improved dramatically in the 20th century. The table gives the life expectancy at birth (in years) of males born in the United States. Use a scatter plot to choose an appropriate type...
President George H.W. Bush insisted that he had the power to send American troops into combat in the Middle East, without congressional assent. Yet before authorizing force in Operation Desert Storm,...
Two protons are fired toward each other on closely spaced paths, one moving in the $+z$ direction and one in the $-z$ direction. As they pass close to each other, is the magnetic force between...
River Co. began the accounting period with a $132,000 debit balance in its Accounts Receivable account. During the accounting period, River Co. earned revenue on account of $180,000. The ending...
Duncan's Diamond Bit Drilling Corporation (Duncan) purchased the following assets in 2023. Assume its taxable income was $60,000 for purposes of computing the 179 expense deduction. Asset Purchase...
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...
The shareholders equity of Inspiration Management Corp. as of January 1, 2020, follows: Contributed capital Preferred shares, $3, noncumulative 20,000 shares authorized, 4,000 shares issued and...
Kalios Corp. reported the following shareholders equity information for the year ended October 31, 2019: Common shares, 400,000 shares authorized, 140,000 shares issued and outstanding...
Blu Dot cofounders Maurice and John discovered they did not like the furniture they could afford after graduating college and could not afford the furniture they wanted. Blu Dot was conceived as a...
Write a procedure for Wamco payroll confidentiality and secure storage You are a payroll officer for Wamco. Often family members and other external parties ring you up or email you and want to check...
Few athletes were used as endorsers in the 1960s, but that changed dramatically in the 1980s ,name industry began using athletes to endorse their products?
A city issues ten-year, $10,000,000 bonds at face value on January 1, 2023, to finance construction of a new school. Calculate the impact of this issuance on the total fund balance in the fund...
What does the "cost of product/service for customers" include in terms of customer value?
1. Convert to base 2: 12510: 236478: 149210: 532438: 2A316: EE28116:
Let Q0: R2 R2 be reflection in the x axis, let Q1: R2 R2 be reflection in the line y = x, let Q-1: R2 R2 be reflection in the line y = - x, and let R2: R2 R2 be counterclockwise rotation through...
Which of the following is FALSE regarding the purchasing power parity (PPP). a. The PPP is a manifestation of the law of one price b. The PPP says that a country with a higher expected inflation can...
Western Bank & Trust purchased land and a building for the lump sum of $3,000,000. To get the maximum tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the...
Jim Reed manages a fleet of utility trucks for a rural county government. Hes been in his job 30 years, and he knows where the angles are. He makes sure that when new trucks are purchased, the...
Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as independent contractors rather than as regular employees....
Silverton Confectionery is a growing Berkshire-based company specialising in selling quality chocolates and sweets at higher than average prices through newsagents and confectioners. At present their...
4. X, the proprietor of a departmental store, decided to calculate separate profits for his two departments L and M for the month ending 31st January. Stock on 31st January could not be valued for...
What level of confidentiality should be attached to the preparation and handling of a memorandum of law? Why? Assume you have been working for a legal specialist in estate law for a number of years...

Taylor Corporation discovered in 2019 that it had incorrectly recorded in 2018 a cash payment of $70,000

Question:

Step by Step Answer:

1 The effect of the error on the accounting equation in 2018 is a decreas...View the full answer

Horngrens Accounting

Students also viewed these Business questions