1 2 3. 4. 1 Year-end wages payable as of the end of the current year of $3,720 were not recorded because the bookkeeper thought that "they were immaterial. 2 Accrued vacation pay for the current year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it 3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,448 because "the amount of the check is about the same every year." Prepare the necessary correcting entries during the current year, assuming that Carla uses a calendar-year basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Reported sales revenue for the year is $1,935,560. This includes all sales taxes collected for the year. The sales tax rate is 63. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The No. Account Titles and Explanation bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $93.560. (To record the sales taxes due.) (To correct prior entry.) Debit [[ Credit
1 2 3. 4. 1 Year-end wages payable as of the end of the current year of $3,720 were not recorded because the bookkeeper thought that "they were immaterial. 2 Accrued vacation pay for the current year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it 3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $2,448 because "the amount of the check is about the same every year." Prepare the necessary correcting entries during the current year, assuming that Carla uses a calendar-year basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Reported sales revenue for the year is $1,935,560. This includes all sales taxes collected for the year. The sales tax rate is 63. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The No. Account Titles and Explanation bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $93.560. (To record the sales taxes due.) (To correct prior entry.) Debit [[ Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
2
3.
4.
1.
N
Year-end wages payable as of the end of the current year of $3,720 were not recorded because the bookkeeper thought that
"they were immaterial."
2.
Accrued vacation pay for the current year of $31,100 was not recorded because the bookkeeper "never heard that you had to
do it."
Prepare the necessary correcting entries during the current year, assuming that Carla uses a calendar-year basis. (Credit account titles
are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter o for the amounts. List all debit entries before credit entries.)
3.
Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of
$2,448 because "the amount of the check is about the same every year."
No. Account Titles and Explanation
Reported sales revenue for the year is $1,935,560. This includes all sales taxes collected for the year. The sales tax rate is 6%.
Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The
bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax
Expense account is $93.560.
(To record the sales taxes due.)
(To correct prior entry.)
Debit
1000 00
Credit
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