The following numbers are taken from the financial statements of Sherry Company for year ended Dec....
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The following numbers are taken from the financial statements of Sherry Company for year ended Dec. 31, 2020. Revenues Expenses Net Income Assets Total Liabilities SE Equity 15,000 Net Cash Flows from Operating Activities Net Cash Flows from Investing Activities -3,000 Net Cash Flows from Financing Activities 5,000 During the audit, auditors detected the following transaction was not recorded: Error: Company had sold 1,000 units of a product called Zoom at a price of $10 per unit on account. Applicable sales tax rate was 8% which was not included in sale price. Each unit of Zoom had cost $8 to purchase. Company had failed to record the transaction. Company is using Perpetual Inventory System (that is, in recording transaction, both the revenues and cost of sales and change in inventory are recorded). What would be the adjusted balances for the above items in the financial statements after recording the above transaction? Revenues = Expenses = Example of Answer: Revenues = 2000 Expenses = 1800 Net Income = 200 so on (No space, comma, decimal point, or $ sign) Show negative amount with a minus Example: Net Cash Flows from Operating Activities = -3000 Net Income = Unadjusted Bal 120,000 80,000 40,000 100,000 30,000 70,000 Total Assets = Total Liabilities = Total SE = Net Cash Flows from Operating Activities = A/ Net Cash Flows from Investing Activities = Net Cash Flows Financing Activities = N A/ Adjustment Adjusted Bal A/ A A/ A/ A/ The following numbers are taken from the financial statements of Sherry Company for year ended Dec. 31, 2020. Revenues Expenses Net Income Assets Total Liabilities SE Equity 15,000 Net Cash Flows from Operating Activities Net Cash Flows from Investing Activities -3,000 Net Cash Flows from Financing Activities 5,000 During the audit, auditors detected the following transaction was not recorded: Error: Company had sold 1,000 units of a product called Zoom at a price of $10 per unit on account. Applicable sales tax rate was 8% which was not included in sale price. Each unit of Zoom had cost $8 to purchase. Company had failed to record the transaction. Company is using Perpetual Inventory System (that is, in recording transaction, both the revenues and cost of sales and change in inventory are recorded). What would be the adjusted balances for the above items in the financial statements after recording the above transaction? Revenues = Expenses = Example of Answer: Revenues = 2000 Expenses = 1800 Net Income = 200 so on (No space, comma, decimal point, or $ sign) Show negative amount with a minus Example: Net Cash Flows from Operating Activities = -3000 Net Income = Unadjusted Bal 120,000 80,000 40,000 100,000 30,000 70,000 Total Assets = Total Liabilities = Total SE = Net Cash Flows from Operating Activities = A/ Net Cash Flows from Investing Activities = Net Cash Flows Financing Activities = N A/ Adjustment Adjusted Bal A/ A A/ A/ A/
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Answer Here are the adjusted balances for the financial statement items ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Posted Date:
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