27. Assume that Rogers had made the following mistake in preparation of its 2021 statements, and...
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27. Assume that Rogers had made the following mistake in preparation of its 2021 statements, and no adjustments were made: On December 31, 2021, Rogers received $100,000 from customers for phone services to be provided in January 2022 and made the following incorrect journal entry: $100,000 Cash Contract Revenue $100,000 What would be the effect of the error on the following amounts? Circle U/S for understate, O/S for overstate, or NE for no effect. Ignore income tax effects. (8 points) A) Total liabilities at year-end 2021 B) Income before income taxes at year-end 2021 C) Total assets at year-end 2021 D) Total revenues for 2021 US US US US OS OS OS OS NE NE NE NE 27. Assume that Rogers had made the following mistake in preparation of its 2021 statements, and no adjustments were made: On December 31, 2021, Rogers received $100,000 from customers for phone services to be provided in January 2022 and made the following incorrect journal entry: $100,000 Cash Contract Revenue $100,000 What would be the effect of the error on the following amounts? Circle U/S for understate, O/S for overstate, or NE for no effect. Ignore income tax effects. (8 points) A) Total liabilities at year-end 2021 B) Income before income taxes at year-end 2021 C) Total assets at year-end 2021 D) Total revenues for 2021 US US US US OS OS OS OS NE NE NE NE 27. Assume that Rogers had made the following mistake in preparation of its 2021 statements, and no adjustments were made: On December 31, 2021, Rogers received $100,000 from customers for phone services to be provided in January 2022 and made the following incorrect journal entry: $100,000 Cash Contract Revenue $100,000 What would be the effect of the error on the following amounts? Circle U/S for understate, O/S for overstate, or NE for no effect. Ignore income tax effects. (8 points) A) Total liabilities at year-end 2021 B) Income before income taxes at year-end 2021 C) Total assets at year-end 2021 D) Total revenues for 2021 US US US US OS OS OS OS NE NE NE NE
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The question involves understanding the accrual basis of accounting under which revenues and expense... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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