At the end of April, the first month of the year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated. 2. Salaries of ₱6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday. 3. Accrued salaries of ₱600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year ended December 31. Indicate which items will be erroneously stated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of December 31. Also indicate whether the items in error will be overstated or understated. 4. On January 1st, Great Designs Company had a debit balance of ₱1,450 in the Office Supplies account. During the month, Great Designs purchased ₱115 and ₱160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only ₱350 of Office Supplies remains in the locker. Prepare the January 31st adjusting entry for Office Supplies. 5. For the year ending December 31, 2020, Nathan Clinical Supplies Co. mistakenly omitted adjusting entries for (1) ₱8,900 of unearned revenue that was earned, (2) earned revenue that was not billed of ₱10,200, and (3) accrued wages of ₱7,000. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for 2020.
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At the end of April, the first month of the year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the |
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Salaries of ₱6,400 are paid for a five-day week on Friday. Prepare the adjusting |
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Accrued salaries of ₱600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year ended December 31. Indicate which items will be erroneously stated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of December 31. Also indicate whether the items in error will be overstated or understated. |
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On January 1st, Great Designs Company had a debit balance of ₱1,450 in the Office Supplies account. During the month, Great Designs purchased ₱115 and ₱160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only ₱350 of Office Supplies remains in the locker. Prepare the January 31st adjusting entry for Office Supplies. |
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For the year ending December 31, 2020, Nathan Clinical Supplies Co. mistakenly omitted |
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