Subject - account Please help me. Thankyou. No. Account Titles and Explanation1.2.3.4.Retained EarningsSales Commission PayableSales Commission ExpenseCost of Goods SoldRetained EarningsInventoryAccumulated Depreciation-EquipmentDepreciation ExpenseConstruction in ProcessDeferred Tax LiabilityRetained EarningsDebitCreditECUN Sarasota Company is in the process of adjusting and correcting its books at the end of 2020. In reviewing its records, the followinginformation is compiled.1. Sarasota has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows.December 31, 2019December 31, 20202. In reviewing the December 31, 2020, inventory, Sarasota discovered errors in its inventory-taking procedures that havecaused inventories for the last 3 years to be incorrect, as follows.December 31, 2018December 31, 2019December 31, 20203.4.$3,400$2,400Sarasota has already made an entry that established the incorrect December 31, 2020, inventory amount.UnderstatedUnderstatedPrior to 2020Overstated2020$15,100$20,800$6,800At December 31, 2020, Sarasota decided to change the depreciation method on its office equipment from double-declining-balance to straight-line. The equipment had an original cost of $104,000 when purchased on January 1, 2018. It has a 10-yearuseful life and no salvage value. Depreciation expense recorded prior to 2020 under the double-declining-balance methodwas $38,200. Sarasota has already recorded 2020 depreciation expense of $13,800 using the double-declining-balancemethod.Before 2020, Sarasota accounted for its income from long-term construction contracts on the completed-contract basis.Early in 2020, Sarasota changed to the percentage-of-completion basis for accounting purposes. It continues to use thecompleted-contract method for tax purposes. Income for 2020 has been recorded using the percentage-of-completionmethod. The following information is available.Pretax IncomePercentage-of-Completion$144,60059,100Completed-Contract$99,30019,100

Name: Subject - account Please help me. Thankyou. No. Account Titles and Exp
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Subject - account Please help me. Thankyou. No. Account Titles and Explanation1.2.3.4.Retained EarningsSales Commission PayableSales Commission ExpenseCost of Goods SoldRetained EarningsInventoryAccumulated Depreciation-EquipmentDepreciation ExpenseC

As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Business

Accounting

information is compiled. 1. Sarasota has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. December 31, 2019 December 31, 2020 2. December 31, 2018 December 31, 2019 December 31, 2020 $3,400 $2,400 In reviewing the December 31, 2020, inventory, Sarasota discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. 3. Understated Understated Overstated $15,100 $20,800 $6,800 Sarasota has already made an entry that established the incorrect December 31, 2020, inventory amount. At December 31, 2020, Sarasota decided to change the depreciation method on its office equipment from double-declining- balance to straight-line. The equipment had an original cost of $104,000 when purchased on January 1, 2018. It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2020 under the double-declining-balance method was $38,200. Sarasota has already recorded 2020 depreciation expense of $13,800 using the double-declining-balance method.

information is compiled. 1. Sarasota has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. December 31, 2019 December 31, 2020 2. December 31, 2018 December 31, 2019 December 31, 2020 $3,400 $2,400 In reviewing the December 31, 2020, inventory, Sarasota discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. 3. Understated Understated Overstated $15,100 $20,800 $6,800 Sarasota has already made an entry that established the incorrect December 31, 2020, inventory amount. At December 31, 2020, Sarasota decided to change the depreciation method on its office equipment from double-declining- balance to straight-line. The equipment had an original cost of $104,000 when purchased on January 1, 2018. It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2020 under the double-declining-balance method was $38,200. Sarasota has already recorded 2020 depreciation expense of $13,800 using the double-declining-balance method.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...

See similar textbooks

Similar questions

Borys Companys periodic inventory at December 31, 2019, is understated by 10,000, but purchases are correct. Johnson correctly values its 2020 ending inventory. What is the effect of this error on Boryss 2019 and 2020 financial statements?
Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2020, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2019: An analysis of the accounting records discloses the following cost of goods sold under the FIFO and average cost inventory methods: There are no indirect effects of the change in inventory method. Revenues for 2020 total 130,000; operating expenses for 2020 total 30,000. Koopman is subject to a 21% income tax rate in all years; it pays the income taxes payable of a current year in the first quarter of the next year. Koopman had 10,000 shares of common stock outstanding during all years; it paid dividends of 1 per share in 2020. At the end of 2020, Koopman had cash of 10,000, inventory of 24,000, other assets of 70,800, accounts payable of 4,500, and income taxes payable of 6,000. It desires to show financial statements for the current year and previous year in its 2020 annual report. Required: 1. Prepare the journal entry to reflect the change in methods at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.
Penn Company is in the process of adjusting and correcting its books at the end of 2020. In reviewing its records, the following information is compiled. 1. Penn has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. December 31, 2019 $3,500 December 31, 2020 $2,500 2. In reviewing the December 31, 2020, inventory, Penn discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. December 31, 2018 Understated $16,000 December 31, 2019 Understated $19,000 December 31, 2020 Overstated $ 6,700 Penn has already made an entry that established the incorrect December 31, 2020, inventory amount. 3. At December 31, 2020, Penn decided to change the depreciation method on its office equipment from double-declining-balance to straight-line. The equipment had an original cost of $100,000 when purchased on January 1, 2018. It has a 10-year…
The following errors were discovered on the books of Nash Corporation, during the 2024 year-end process, prior to the books being closed for the year. Prepare the journal entries required to correct the below errors, assuming that Nash follows IFRS and has a perpetual inventory system. For this question, ignore income tax. (a) While conducting the year-end inventory count in December 2024, it was discovered that $7,400 of product was omitted from the December 2023 inventory count. The product had been shipped to a customer early in 2024, but had not been included in the 2023 ending inventory. (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 debit entry before credit entry.)
During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting error relating to inventory on December 31, 2020 was discovered. This required an increase in the carrying amount of inventory on that date of P500,000. b)It was also decided to write off P50,000 from inventory which was over two years old as it was obsolete. c) The provision for uncollectible accounts on December 31, 2020 was P200,000. During 2021, an amount of P300,000 was written off on the December 31, 2020 accounts receivable. What pretax adjustment is required to restate retained earnings on January 1, 2021?
During the year ended December 31, 2021, Angel Company revealed the following events: a) A counting error relating to inventory on December 31, 2020 was discovered. This required an increase in the carrying amount of inventory on that date of P500,000. b)It was also decided to write off P50,000 from inventory which was over two years old as it was obsolete. c) The provision for uncollectible accounts on December 31, 2020 was P200,000. During 2021, an amount of P300,000 was written off on the December 31, 2020 accounts receivable. What pretax adjustment is required to restate retained earnings on January 1, 2021? Your answer
During the year ended December 31, 2021, Samar Company revealed the following events: a) a counting error relating to inventory on December 31, 2020 was discovered. This required a reduction in the carrying amount of inventory on that date of P2,000,000. b) the provision for uncollectible accounts receivable on December 31, 2020 wasP500,000. During 2021, an amount of P800,000 was written off the from the December 31, 2020 accounts receivable. What pretax adjustment is required to restate retained earnings on January 1, 2021?
During the year ended December 31, 2021, Samar Company Problem 8-24 (IFRS) revealed the following events: A counting error relating to inventory on December 31, 2020 was discovered. This required a reduction in the carrying amount of inventory on that date of P2,000,000. The provision for uncollectible accounts receivable on December 31, 2020 was P500,000. During 2021, an amount of P800,000 was written off the December 31, 2020 accounts receivable. What pretax adjustment is required to restate retained earnings on January 1, 2021? a. 2,000,000 b. 2,500,000 c. 2,300,000 d.
In 2021, the controller of Sytec Corporation discovered that $42,000 of inventory purchases were incorrectly charged to advertising expense in 2020. In addition, the 2020 year-end inventory count failed to include $30,000 of company merchandise held on consignment by Erin Brothers. Sytec uses a periodic inventory system. Other than the omission of the merchandise on consignment, the year-end inventory count was correct. The amounts of the errors are deemed to be material. Required:1. Determine the effect of the errors on retained earnings at January 1, 2021. Explain your answer. (Ignore income taxes.)2. Prepare a journal entry to correct the errors.3. What other step(s) would be taken in connection with the correction of the errors?
Lumen INC. is preparing its 2021 year-end financial statements. Prior to any adjustments, inventory is valued at P76,050, based on a physical count. The following information has been found relating to certain inventory transactions.I. Goods valued at P 11,000 are on consignment with a customer. These goods are not included in the P76,050 inventory figure. Which of the following statements is true?a. There is no effect on the 2021 ending inventory.b. 2021 ending inventory is overstated.c. The 2021 net income is overstated.d. The 2021 net income is understated.Please included an explaination.
During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 understated by $120,000 2020 overstated by 150,000 WMC uses a periodic inventory system and the FIFO cost method.Required:1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. Explain your answer. (Ignore income taxes.)2. Prepare a journal entry to correct the errors.3. What other step(s) would be taken in connection with the correction of the errors?
Sterling Company reported their inventory as $50,700 on the books at December 31, 2021. At the close of the year, the auditors came in and identified the following issues: Product shipped to a customer December 28, 2021 f.o.b. destination costing $4,200, was not received by the customer until January 2022. The product was not included in the inventory balance because it was not in the warehouse. Samples costing $2,300 were delivered to a client for review on December 27, 2021. They are to be returned on January 5, 2022. They were not included in inventory because they were not in the warehouse. Purchases of product in the amount of $2,100 were in transit as of December 31, 2020. They had been shipped f.o.b. shipping point. They were not included in inventory because they were not in the warehouse. Product shipped to a customer December 28, 2020, f.o.b. shipping point cost $2,500. It was not received by the customer until January 2022. The product was not included in the…