The summary financial statements of Pronghorn Ltd. on December 31, 2020, are as follows: PRONGHORN LTD....
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The summary financial statements of Pronghorn Ltd. on December 31, 2020, are as follows: PRONGHORN LTD. Statement of Financial Position December 31, 2020 Assets Cash Accounts and notes receivable Inventory Property, plant, and equipment (net). Accounts and notes payable Long-term debt Common shares Retained earnings 1 2 Liabilities and Shareholders' 3. 4. The following errors were made by the inexperienced accountant on December 31, 2019, and were not corrected. The inventory was overstated by $13,000. A prepaid expense of $2,400 was omitted. (It was fully expensed in 2019.) Accrued revenue of $2,500 was omitted. (It was recognized when cash was received in 2020.1 Inventory Cash A supplier's invoice for $1,700 for purchases made in 2019 was not recorded until 2020. On December 31, 2020, there were further errors: 5. 6. 7. 8. The inventory was understated by $17.000. A prepaid expense of $750 was omitted. Accrued December 2020 salaries of $1,800 were not recognized. Unearned income of $2.300 was recorded in the 2020 revenue. The net income reported on the books for 2020 was $60,000. Total Assets In addition, it was determined that $20,000 of the accounts payable were long-term, and that a $500 dividend was reported as dividend expense and deducted in calculating net income. Prepare a corrected SFP at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg (45)) V Working capital Current ratio Debt to equity ratio. $10,000 49,000 79,000 V $ 125,000 $263,000 V Equity V $68,000 62,000 60,000 73,000 $263,000 V V V $ $ Total Liabilities and Shareholders' Equity $ $ Pronghorn Ltd. Statement of Financial Position Unadi. Assets Liabilities and Shareholders' Equity to 1 to 1 Adi. $ $ Using the corrected data. recalculate the working capital and the ratios. (Round Current ratio and Debt-to-equity ratio to 2 decimal places, eg. 52.75.) $ $ Revis The summary financial statements of Pronghorn Ltd. on December 31, 2020, are as follows: PRONGHORN LTD. Statement of Financial Position December 31, 2020 Assets Cash Accounts and notes receivable Inventory Property, plant, and equipment (net). Accounts and notes payable Long-term debt Common shares Retained earnings 1 2 Liabilities and Shareholders' 3. 4. The following errors were made by the inexperienced accountant on December 31, 2019, and were not corrected. The inventory was overstated by $13,000. A prepaid expense of $2,400 was omitted. (It was fully expensed in 2019.) Accrued revenue of $2,500 was omitted. (It was recognized when cash was received in 2020.1 Inventory Cash A supplier's invoice for $1,700 for purchases made in 2019 was not recorded until 2020. On December 31, 2020, there were further errors: 5. 6. 7. 8. The inventory was understated by $17.000. A prepaid expense of $750 was omitted. Accrued December 2020 salaries of $1,800 were not recognized. Unearned income of $2.300 was recorded in the 2020 revenue. The net income reported on the books for 2020 was $60,000. Total Assets In addition, it was determined that $20,000 of the accounts payable were long-term, and that a $500 dividend was reported as dividend expense and deducted in calculating net income. Prepare a corrected SFP at December 31, 2020. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg (45)) V Working capital Current ratio Debt to equity ratio. $10,000 49,000 79,000 V $ 125,000 $263,000 V Equity V $68,000 62,000 60,000 73,000 $263,000 V V V $ $ Total Liabilities and Shareholders' Equity $ $ Pronghorn Ltd. Statement of Financial Position Unadi. Assets Liabilities and Shareholders' Equity to 1 to 1 Adi. $ $ Using the corrected data. recalculate the working capital and the ratios. (Round Current ratio and Debt-to-equity ratio to 2 decimal places, eg. 52.75.) $ $ Revis
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Answer rating: 100% (QA)
Particulars Unadj Adj Revised Reason Inventory 7900000 1700000 9600000 Inventory understated Cash 10... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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