Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. The year-end cutoff of sales transactions: WXY Technology Inc. left the salesljournal open after year-end for two extra days and included January 1* and 2nd 2021 sales in the December 31", 2020 totals. The company uses a perpetual inventory system. (cOGS & Inventory entries required) What effect would this have on the 2020 financial statements? WXY has the following balances on book as of December 29", 2020: • Cash: • Inventory: Sales: $40,000 • Accounts Receivable: $15,200 • Cost of Goods Sold: $13,000 $30,000 $14,500 January 1", 2021 sale = $4,500, COGS = $2,300 2nd, 2021 sale = $3,700, COGS = $950 2020 Journal Entries GL Account Accounts Receivable item Date Dr. Cr. 12/30/2020 51,000.00 Sales $1,000.00 2 12/30/2020 Cost of Goods Sold S600.00 Inventory $600.00 12/30/2020 Cash 54,000.00 Accounts Receivable $4,000.00 4 12/31/2020 Accounts Receivable 52,000.00 Sales $2,000.00 12/31/2020 cost of Goods Sold $1,300.00 Inventory $1,300.00 12/31/2020 Cash $3,000.00 Accounts Receivable 53,000.00 12/31/2020 Accounts Receivable $4,500.00 Sales $4,500.00 12/31/2020 cost of Goods Sold 52,300.00 Inventory $2,300.00 12/31/2020 Accounts Receivable $5,700.00 Sales $3,700.00 10 12/31/2020 Cost of Goods sold S050.00 Inventory S050.00

1. The year-end cutoff of sales transactions: WXY Technology Inc. left the salesljournal open after year-end for two extra days and included January 1* and 2nd 2021 sales in the December 31", 2020 totals. The company uses a perpetual inventory system. (cOGS & Inventory entries required) What effect would this have on the 2020 financial statements? WXY has the following balances on book as of December 29", 2020: • Cash: • Inventory: Sales: $40,000 • Accounts Receivable: $15,200 • Cost of Goods Sold: $13,000 $30,000 $14,500 January 1", 2021 sale = $4,500, COGS = $2,300 2nd, 2021 sale = $3,700, COGS = $950 2020 Journal Entries GL Account Accounts Receivable item Date Dr. Cr. 12/30/2020 51,000.00 Sales $1,000.00 2 12/30/2020 Cost of Goods Sold S600.00 Inventory $600.00 12/30/2020 Cash 54,000.00 Accounts Receivable $4,000.00 4 12/31/2020 Accounts Receivable 52,000.00 Sales $2,000.00 12/31/2020 cost of Goods Sold $1,300.00 Inventory $1,300.00 12/31/2020 Cash $3,000.00 Accounts Receivable 53,000.00 12/31/2020 Accounts Receivable $4,500.00 Sales $4,500.00 12/31/2020 cost of Goods Sold 52,300.00 Inventory $2,300.00 12/31/2020 Accounts Receivable $5,700.00 Sales $3,700.00 10 12/31/2020 Cost of Goods sold S050.00 Inventory S050.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
1. The year-end cutoff of sales transactions: WXY Technology Inc. left the salesljourmal open after year-end for two extra days and included January 1 and 2nd 2021 sales in the December 31*, 2020 totals. The company uses a perpetual inventory system. (COGS & Inventory entries required) What effect would this have on the 2020 financial statements? WXY has the following balances on book as of December 29, 2020: Cash: $30,000 $14,500 • Inventory: • Sales: $40,000 • Accounts Receivable: $15,200 • Cost of Goods Sold: $13,000 January 1*, 2021 sale = $4,500, COGS = $2,300 January 2nd, 2021 sale = $3,700, COGS = $950 2020 Journal Entries item# Date GLAccount Dr. Cr. 1 12/30/2020 Accounts Receivable $1,000.00 Sales $1,000.00 2 12/30/2020 Cost of Goods Sold S-500.00 Inventory S600.00 3 12/30/2020 Cash $4,000.00 Accounts Receivable $4,000.00 4 12/31/2020 Accounts Receivable $2,000.00 Sales $2,000.00 5 12/31/2020 Cost of Goods Sold $1,300.00 Inventory $1,300.00 6 12/31/2020 Cash $3,000.00 Accounts Receivable $3,000.00 12/31/2020 Accounts Receivable $4,500.00 Sales $4,500.00 8 12/31/2020 Cost of Goods Sold $2,300.00 Inventory $2,300.00 9 12/31/2020 Accounts Receivable $3,700.00 Sales $3,700.00 10 12/31/2020 Cost of Goods Sold S050.00 Inventory 도950.00
Transcribed Image Text:1. The year-end cutoff of sales transactions: WXY Technology Inc. left the salesljourmal open after year-end for two extra days and included January 1 and 2nd 2021 sales in the December 31*, 2020 totals. The company uses a perpetual inventory system. (COGS & Inventory entries required) What effect would this have on the 2020 financial statements? WXY has the following balances on book as of December 29, 2020: Cash: $30,000 $14,500 • Inventory: • Sales: $40,000 • Accounts Receivable: $15,200 • Cost of Goods Sold: $13,000 January 1*, 2021 sale = $4,500, COGS = $2,300 January 2nd, 2021 sale = $3,700, COGS = $950 2020 Journal Entries item# Date GLAccount Dr. Cr. 1 12/30/2020 Accounts Receivable $1,000.00 Sales $1,000.00 2 12/30/2020 Cost of Goods Sold S-500.00 Inventory S600.00 3 12/30/2020 Cash $4,000.00 Accounts Receivable $4,000.00 4 12/31/2020 Accounts Receivable $2,000.00 Sales $2,000.00 5 12/31/2020 Cost of Goods Sold $1,300.00 Inventory $1,300.00 6 12/31/2020 Cash $3,000.00 Accounts Receivable $3,000.00 12/31/2020 Accounts Receivable $4,500.00 Sales $4,500.00 8 12/31/2020 Cost of Goods Sold $2,300.00 Inventory $2,300.00 9 12/31/2020 Accounts Receivable $3,700.00 Sales $3,700.00 10 12/31/2020 Cost of Goods Sold S050.00 Inventory 도950.00
Use T-Account to show and calculate: a) Balance for each account as WXY recorded at year end Dec. 31, 2020. b) Identify the incorrect JE c) Show Corrected Balance for each account, plus Gross Profit. d) Determine the overstatements and/or understatements that would result from the error, include Gross Profit.
Transcribed Image Text:Use T-Account to show and calculate: a) Balance for each account as WXY recorded at year end Dec. 31, 2020. b) Identify the incorrect JE c) Show Corrected Balance for each account, plus Gross Profit. d) Determine the overstatements and/or understatements that would result from the error, include Gross Profit.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS