1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2019 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2018. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 1% of the accounts receivable are estimated to be uncollectible. We use the allowance method to account for uncollectibles. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2018 Additional information: Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities retained earnings We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record how much the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2018? Balance Sheet 1/1/2017 Current assets $45,559.00 $4,690.00 $4,258.00 $459,871.00 $2,000.00 Cash Accounts receivable Office Supplies Inventory Pre-paid rent Notes Rec $8,331.00 Fixed assets Building $252,845.00 -$157,000.00 $95,845.00 $5,000.00 $56,000.00 (Less Accumulated Depreciation) Furniture Equipment Land $42,000.00 Total assets $803,554.00 Current liabilities Salaries Payable $3,000.00 Accounts payable $88,437.00 Long term liabilities $456,286.00 $547,723.00 Notes Payable Total Liabilities Capital Stock Retained Earnings $100,000.00 $155,831.00 Total Liabilities and Shareholder Equity $803,554.00 ABC Inc UNADJUSTED UNTRIAL BALANCE 12/31/18 DR CR $7,255.00 $1,258.00 Cash Accounts receivable Office Supplies $11,487.00 $441,742.00 Inventory Pre-paid rent $4,000.00 Building Accumulated Depreciation Furniture Equipment Notes Rec Land Salaries Payable Accounts payable Notes Payable Capital Stock Retained Earnings Sales Revenue COGS Salaries Expense Rent Expense $252,845.00 $157,000.00 $9,000.00 $62,000.00 $81,612.00 $42,000.00 $5,000.00 $83,125.00 $440,035.00 $100,000.00 $105,831.00 $163,208.00 $81,000.00 $42,000.00 $18,000.00 $1,054,199.00 $1,054,199.00 1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2019 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2018. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 1% of the accounts receivable are estimated to be uncollectible. We use the allowance method to account for uncollectibles. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2018 Additional information: Furniture was bought for cash and equipment was bought on credit. No assets were sold. Cash dividends of $50,000 were paid during the year. Use the indirect method for creating the Statement of Cash Flows 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities retained earnings We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record how much the assets, liabilities, and retained earnings would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2018? Balance Sheet 1/1/2017 Current assets $45,559.00 $4,690.00 $4,258.00 $459,871.00 $2,000.00 Cash Accounts receivable Office Supplies Inventory Pre-paid rent Notes Rec $8,331.00 Fixed assets Building $252,845.00 -$157,000.00 $95,845.00 $5,000.00 $56,000.00 (Less Accumulated Depreciation) Furniture Equipment Land $42,000.00 Total assets $803,554.00 Current liabilities Salaries Payable $3,000.00 Accounts payable $88,437.00 Long term liabilities $456,286.00 $547,723.00 Notes Payable Total Liabilities Capital Stock Retained Earnings $100,000.00 $155,831.00 Total Liabilities and Shareholder Equity $803,554.00 ABC Inc UNADJUSTED UNTRIAL BALANCE 12/31/18 DR CR $7,255.00 $1,258.00 Cash Accounts receivable Office Supplies $11,487.00 $441,742.00 Inventory Pre-paid rent $4,000.00 Building Accumulated Depreciation Furniture Equipment Notes Rec Land Salaries Payable Accounts payable Notes Payable Capital Stock Retained Earnings Sales Revenue COGS Salaries Expense Rent Expense $252,845.00 $157,000.00 $9,000.00 $62,000.00 $81,612.00 $42,000.00 $5,000.00 $83,125.00 $440,035.00 $100,000.00 $105,831.00 $163,208.00 $81,000.00 $42,000.00 $18,000.00 $1,054,199.00 $1,054,199.00
Expert Answer:
Answer rating: 100% (QA)
Question a Cost of Goods sold 1722 To inventory 1722 b Supplies expense 4255 To Supplies 4255 c Depreciation ... View the full answer
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date:
Students also viewed these accounting questions
-
On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2018. Additional information needed for cash flow statement (not adjusting entries): Furniture was...
-
A retailers physical count of inventory was higher than that shown by the perpetual records. Which of the following could explain the difference? a. Inventory items had been counted but the tags...
-
A retail company recently completed a physical count of ending merchandise inventory to use in preparing adjusting entries. In determining the cost of the counted inventory, company employees failed...
-
Rio Tinto is a listed company in the mining and metals production industry. Some information drawn from its 2020 annual report is shown below. Safety and health performance 2020 2019 2018 Fatalities...
-
Discuss the three generations of DBMSs.
-
The auditors verification of current assets such as cash, securities, and inventories emphasizes observation, inspection, and confirmation to determine the physical existence of these assets. Should...
-
The codon change (Gly-12 to Val-12) in human H-ras that converts it to oncogenic H-ras has been associated with many types of cancers. For this reason, researchers would like to develop drugs to...
-
You work for Nokia in its global cell phone group. You have been made project manager for the design of a new cell phone. Your supervisors have already scoped the project so you have a list showing...
-
Two years after the first round XMP GmbH receives a second offer form B-Capital. B-Capital offers to invest 12,500,000.00 at a 60,000,000.00 pre-money valuation. What is the founders' post-round...
-
Lannion and Co. is engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: There were no price changes of any description during...
-
A survey of ACC students in the Learning Labs during one day revealed the following about tutoring needs: Math only 48 Math and English only 22 English only 35 Math and Chemistry only 13 None of...
-
A 1.50-cm-high diamond ring is placed 20.0 cm from a concave mirror whose radius of curvature is 30.0 cm. Determine the position of the image. Determine the size of the image.
-
Company A's corporate leaders, whom you have always considered to be brilliant and trustworthy, explain to you that Company A is very close to creating technology that could prevent the spread of...
-
What factors do you believe have contributed to the legal evolution that renders contracts obtained through physical compulsion void, while contracts acquired through improper threats are classified...
-
write a PYTHON program to return true if a given string contains the string 'pop, but the middle "o" also may contain another character. You'll need to use slicing and a loop that does not go beyond...
-
A 120 kg football player is running at 8.15 m/s A hand-thrown 0-410 kg football has a speed of 275 m/s. (Assume the football player is running in + y-direction). Assuming that the football player...
-
Sample Blank BSA (2 ug/uL) BSA (1.5 ug/uL) BSA (1 ug/uL) BSA (0.75 ug/uL) BSA (0.5 ug/uL) BSA (0.25 ug/uL) BSA (0.125 ug/uL) BSA (0.025 ug/uL) Protein Extract (C) Protein Extract (T) Questions Abs 1...
-
Before the 1973 oil embargo and subsequent increases in the price of crude oil, gasoline usage in the United States had grown at a seasonally adjusted rate of 0.57 percent per month, with a standard...
-
Audit documentation that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under audit will be found in the a. Current file audit...
-
For each of the following situations, indicate the type of opinion(s) that auditors could issue (more than one opinion may be appropriate in each circumstance). Unless otherwise noted, assume that no...
-
When an audit team does not receive a response on a positive accounts receivable confirmation, auditors should do all of the following except a. Send a second request. b. Do nothing for immaterial...
-
A diffraction grating is a closely spaced array of apertures or obstacles forming a series of closely spaced slits. The simplest type in which an incoming wave front meets alternating opaque and...
-
Find the position of the first minimum for a single slit of width 0.04 \(\mathrm{mm}\) on a screen of \(2 \mathrm{~m}\) distance, when light from a He-Ne laser \(\lambda=\) 6328 is shone on the slit.
-
A GaAs p-n junction has a \(100 \mu \mathrm{m} \times 100 \mathrm{~m}\) cross section and a width of the depletion layer \(W=440 \mathrm{~nm}\). Consider the junction in thermal equilibrium without...
Study smarter with the SolutionInn App