1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 (note: withdrawals of $50,000 were taken earlier in the year.) 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities equity We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record the amount the assets, liabilities, and equity would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2020?

1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below: A physical count of inventory revealed $440,020.00 of inventory A physical count of supplies revealed $7232.00 of supplies Depreciation for the year was $24,005 The balance in prepaid rent represents an amount paid Dec. 1st for one year Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday. 2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 (note: withdrawals of $50,000 were taken earlier in the year.) 3. Answer these questions: a. How would the financial statements be different if (each of these scenerios are independent): assets liabilities equity We had missed counting incoming inventory of $1,700 We had forgotten to record depreciation We had forgotten to count supplies The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance) (record the amount the assets, liabilities, and equity would change and indicate the direction of change with a + or - so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.) b. How would the financial statements be different if all of these scenerios happened in 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below:

A physical count of inventory revealed $440,020.00 of inventory

A physical count of supplies revealed $7232.00 of supplies

Depreciation for the year was $24,005

The balance in prepaid rent represents an amount paid Dec. 1st for one year

Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020.

Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday.

2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 (note: withdrawals of $50,000 were taken earlier in the year.)

3. Answer these questions:

a. How would the financial statements be different if (each of these scenerios are independent):

assets

liabilities

equity

We had missed counting incoming inventory of $1,700

We had forgotten to record depreciation

We had forgotten to count supplies

The bookkeeper had thought the $40,000 we received 12-1 was for past services instead of services to be performed in January

The bookkeper wasn't aware that the note payable includes 8% interest to be paid at maturity (calculated on the average balance)

(record the amount the assets, liabilities, and equity would change and indicate the direction of change with a + or -

so that a poitive number would indicate it is too high by that amount and a negative number indicates it is too low by that amount.)

b. How would the financial statements be different if all of these scenerios happened in 2020?

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