Before preparing financial statements for the current year, the chief accountant for Toso Shipping discovered the following errors in the accounts, 1. The declaration and payment of NT$$0,000 cash dividend was recorded as a debit to Interest Expense NT$50,000 and a credit to Cash NT$50,000. 2. A 10% share dividend (1,000 shares) was declared on the NT$20 par value shares when the market price per share was NT$36. The only entry made was Share Dividends (Dr.) NT$20,000 and Dividend Payable (Cr.) NT$20,000. The shares have not been issued. 3. A 4-for-1 share split involving the issue of 400,000 shares of NT$5 par value ordinary shares for 100,000 shares of NT$20 par value ordinary shares was recorded as a debit to Retained Earnings NT$2,000,000 and a credit to Share Capital–Ordinary NT$2,000,000. Instructions Prepare the correcting entries at December 31.

Before preparing financial statements for the current year, the chief accountant for Toso Shipping discovered the following errors in the accounts, 1. The declaration and payment of NT$$0,000 cash dividend was recorded as a debit to Interest Expense NT$50,000 and a credit to Cash NT$50,000. 2. A 10% share dividend (1,000 shares) was declared on the NT$20 par value shares when the market price per share was NT$36. The only entry made was Share Dividends (Dr.) NT$20,000 and Dividend Payable (Cr.) NT$20,000. The shares have not been issued. 3. A 4-for-1 share split involving the issue of 400,000 shares of NT$5 par value ordinary shares for 100,000 shares of NT$20 par value ordinary shares was recorded as a debit to Retained Earnings NT$2,000,000 and a credit to Share Capital–Ordinary NT$2,000,000. Instructions Prepare the correcting entries at December 31.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 10CDQ: Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total...

See similar textbooks

Similar questions

Before preparing fi nancial statements for the current year, the chief accountant for Toso Company discovered the following errors in the accounts. 1. The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000. Journalize stock dividends. Compare eff ects of a stock dividend and a stock split. Indicate account balances after a stock dividend. Indicate the eff ects on stockholders’ equity components. Prepare correcting entries for dividends and a stock split. Corporations: Dividends, Retained Earnings, and Income Reporting 2. A 10% stock dividend (1,000 shares) was declared on the $10 par value stock when the market price per share was $18. The only entry made was Stock Dividends (Dr.) $10,000 and Dividend Payable (Cr.) $10,000. The shares have not been issued. Instructions Prepare the correcting entries at December 31.
As auditor for Chrisley and Dale Associates, you have been assigned to check McKesson Corporation's computation of earnings per share for the current year. The financial controller has supplied you with the following computations. Net Income $6,800,000 Ordinary shares issued and outstanding: Beginning of year 650,000 End of year 4,000,000 Average 2,325,000 Earnings per share calculation: $6,800,000 /2,325,000 = $2.92 You have gathered the following information: On January 1, 2020, McKesson Corp. issued 650,000 shares. Additional issues of shares for the year were as follows: April 1 150,000 shares. May 1…
As auditor for Chrisley and Dale Associates, you have been assigned to check McKessonCorporation’s computation of earnings per share for the current year. The financial controller has supplied you with the following computations. Net Income $6,800,000Ordinary shares issued and outstanding:Beginning of year 650,000End of year 4,000,000Average 2,325,000Earnings per share calculation:$6,800,000 = $2.922,325,000You have gathered the following information:On January 1, 2020, McKesson Corp. issued 650,000 shares. Additional issues of shares for the year were as follows:April 1 150,000 shares.May 1 A 20% share dividendAugust 1 700,000 shares.September 1 340,000 shares.November 1 A 2 for 1 share splitAll 4,000,000 shares were outstanding at December 31, 2020.On January 1, 10% convertible debentures, $60,000,000 face value, were issued at par. Each $1,000 debenture is convertible into 40 ordinary shares. The interest expense for the current year related to the liability component of the…
The Pandora Company made the following errors on 12/31/19: • Recorded the expiration of prepaid insurance by debiting Sales Revenue and crediting Depreciation Expense for $12. • Recorded the issuance of 10-year bonds at par value by debiting Unearned Revenue and crediting Common Stock for $13. 12/31/19 Total Stockholders' Equity is in error by: Select one: a. $12 O b. $0 c. $13 d. $2 e. $25
Before preparing financial statements for the current year, the chief accountant for Wildhorse Ltd. provided the following information regarding the accounting for dividends and stock splits: 1. 2 3. 1. 2. Wildhorse has 18,800, $4 noncumulative preferred shares issued. It paid the preferred shareholders the quarterly dividend, and recorded it as a debit to Dividends Expense and a credit to Cash. Determine if each of the above transactions was recorded correctly and, if not, prepare the correct entry. (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. A 5% stock dividend (1,000 shares) was declared on the common shares when the fair value per share was $12. To record the declaration, Retained Earnings was debited and Dividends Payable was credited. The shares have not been issued yet. The…
Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
Question-based on, "correcting entries". I have tried it but do not understand it. Please be clear.
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity: Preference shares, P100 par P3,000,000 Ordinary Shares, P10 par 6,500,000 Capital Surplus (1,640,000) Retained Earnings 15,000,000 Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries: Credit/(Debit) Premium on Ordinary Shares P2,710,000 Capital from donated land 1,600,000 Treasury shares (50,000 ordinary shares at cost) (750,000) Premium on Preference Shares 300,000 Appropriation for contingencies 2,500,000 Share dividend issued (50%) (2,000,000) Prior period adjustment (net of income taxes) (1,200,000) Loss from the fire (uninsured), 2022 (1,800,000) Property dividend distributed (600,000) Cash dividends declared to be paid in 2023 (2,400,000) Balance (P1,640,000) Your examination of…
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity: Preference shares, P100 par P3,000,000 Ordinary Shares, P10 par 6,500,000 Capital Surplus (1,640,000) Retained Earnings 15,000,000 Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries: Credit/(Debit) Premium on Ordinary Shares P2,710,000 Capital from donated land 1,600,000 Treasury shares (50,000 ordinary shares at cost) (750,000) Premium on Preference Shares 300,000 Appropriation for contingencies 2,500,000 Share dividend issued (50%) (2,000,000) Prior period adjustment (net of income taxes) (1,200,000) Loss from the fire (uninsured), 2022 (1,800,000) Property dividend distributed (600,000) Cash dividends declared to be paid in 2023 (2,400,000) Balance (P1,640,000) Your examination of…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Pronghorn Corp purchased 2,100 shares of its $10 par value common stock for $79,800 on August 1. It will hold these in the treasury until resold. Journalize the treasury stock transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 1
Stevie Systems completed the following stock issuance transactions: i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Stevie Systems? Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) June 19: Issued 1,100 shares of $3 par common stock for cash of $13.00 per share. Journal Entry Date Jun More info Jun Jul 19 11 Accounts *** Print Debit 19 Issued 1,100 shares of $3 par common stock for cash of $13.00 per share. 3 Sold 340 shares of $3.50, no-par preferred stock for $17,000 cash. Received inventory with a market value of $28,000 and equipment with market value of $11,000. Issued 3,000 shares of the $3 par common stock in exchange. Credit Done