The following errors in the corporation’s accounting have been discovered:

1.		Keane collected $4,000 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue.
2.		The inventory amount reported included $3,200 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $900 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3.		Sales for the first day in January 2018 in the amount of $10,200 were entered in the sales journal as of December 31, 2017. Of these, $5,800 were sales on account and the remainder were cash sales.
4.		Cash, collected in December 2017, but entered as received in January 2018 totaled $4,100. Of this amount, $1,568 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales.
5.		Cash of $4,400 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018.
6.		January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $5,700, on which a cash discount of 1% was taken.

1.

Cash: $ ________
Accounts Receivable: $ ________
Inventory: $ ________
Accounts Payable: $ ________
Notes Payable: $ ________
Unearned Revenue: $ ________

2. What is the future value of 22 periodic payments of $5,920 each made at the beginning of each period and compounded at 8%?
3. What is the present value of $3,640 to be received at the beginning of each of 30 periods, discounted at 5% compound interest?
4. What is the future value of 15 deposits of $3,080 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 15th period.)

 

Transcribed Image Text:

The current assets and current liabilities sections of the balance sheet of Sandhill Co. appear as follows. Sandhill Co. Balance Sheet (Partial) As of December 31, 2017 Cash $18,600 Accounts payable $27,300 Accounts receivable $38,400 Notes payable 14,900 Less: Allowance for doubtful accounts 1,000 37,400 Unearned revenue 4,200 Inventory 61,600 Total current liabilities $46,400 Prepaid expenses 5,200 Total current assets $122,800 The following errors in the corporation's accounting have been discovered: The current assets and current liabilities sections of the balance sheet of Sandhill Co. appear as follows. Sandhill Co. Balance Sheet (Partial) As of December 31, 2017 Cash $18,600 Accounts payable $27,300 Accounts receivable $38,400 Notes payable 14,900 Less: Allowance for doubtful accounts 1,000 37,400 Unearned revenue 4,200 Inventory 61,600 Total current liabilities $46,400 Prepaid expenses 5,200 Total current assets $122,800 The following errors in the corporation's accounting have been discovered:

Answer rating: 100% (QA)

answer Cash Accounts receivable Inventory Account... View the full answer