Prublem 22 08 On March 5, 2021, you were hired by widhwas inc. a closcly held compary, a af member of its nenly created intemal auditing department. while revieming the companys recordo for 2019 and 2020, you divco-er that ne odjustnents have yet been made for the folloning itema. Themme 1. 2. 3. 4. Interest income of s14,400 was nat acorued a the End of 2019. I naa recorded when received in February 2020. A camputer cneting s3,700 uar. mepaneat wtar pureraa: ar luly 1, 3015. epasted ta hav 4-yanr ite eth no ralvnge valun. Tha company typicaly urar traight-ina depreatian for all fhant ate. kescarch and development coss of $30,300 ne e incured car y in 2019. They nere capitaliaed and were to be amortued over a year period. Amortization of s10,100 was recurded for 20:9 and $10,100 for 2020. On Ianunry 3, 3010, wildhama ianced a huidn; for 5 yeaT at a martinty rartal at sa,nen. On that data, the sompany paid the fallong amnunte, which uera penead wihen pard. Senunty depsee First month's rent Lact manth'e rent 60.tan 109,דד> The company received $37,200 from e customer at Uie bcyring of 2019 far services Uhat it is 1o perferm everly vrer a 3 year period beginning in 2019. Nane of Uhe amount reccived waa repened as urcamed reren.e al Uie erd afr 2018. Indicate the effest of any errors an the net income figure reparted on tre income stemert for Uhe year ending December 31, 2019, and the retained camings figure reparted on the bulance sheet at December 3, 2020. Asume al anourta are material, and ignore income tax elfects. Using the S. G. foiloung format, anter the epreenst dalr amaunte in aspmenst relumne. CareisA ANh item ndapandent of h ather iteme. It e nat necerary ta tatai tha celumne on gnt.
Prublem 22 08 On March 5, 2021, you were hired by widhwas inc. a closcly held compary, a af member of its nenly created intemal auditing department. while revieming the companys recordo for 2019 and 2020, you divco-er that ne odjustnents have yet been made for the folloning itema. Themme 1. 2. 3. 4. Interest income of s14,400 was nat acorued a the End of 2019. I naa recorded when received in February 2020. A camputer cneting s3,700 uar. mepaneat wtar pureraa: ar luly 1, 3015. epasted ta hav 4-yanr ite eth no ralvnge valun. Tha company typicaly urar traight-ina depreatian for all fhant ate. kescarch and development coss of $30,300 ne e incured car y in 2019. They nere capitaliaed and were to be amortued over a year period. Amortization of s10,100 was recurded for 20:9 and $10,100 for 2020. On Ianunry 3, 3010, wildhama ianced a huidn; for 5 yeaT at a martinty rartal at sa,nen. On that data, the sompany paid the fallong amnunte, which uera penead wihen pard. Senunty depsee First month's rent Lact manth'e rent 60.tan 109,דד> The company received $37,200 from e customer at Uie bcyring of 2019 far services Uhat it is 1o perferm everly vrer a 3 year period beginning in 2019. Nane of Uhe amount reccived waa repened as urcamed reren.e al Uie erd afr 2018. Indicate the effest of any errors an the net income figure reparted on tre income stemert for Uhe year ending December 31, 2019, and the retained camings figure reparted on the bulance sheet at December 3, 2020. Asume al anourta are material, and ignore income tax elfects. Using the S. G. foiloung format, anter the epreenst dalr amaunte in aspmenst relumne. CareisA ANh item ndapandent of h ather iteme. It e nat necerary ta tatai tha celumne on gnt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prublem 22 08
On March 5, 2021, you were hired by widhwas inc. a closcly held compary, a af member of its nenly created intemal auditing department. while revieming the companys recordo for 2019 and 2020, you divco-er that ne odjustnents have yet been made for the folloning itema.
Themme
1.
2.
3.
4.
Interest income of s14,400 was nat acorued a the End of 2019. I naa recorded when received in February 2020.
A camputer cneting s3,700 uar. mepaneat wtar pureraa: ar luly 1, 3015. epasted ta hav 4-yanr ite eth no ralvnge valun. Tha company typicaly urar traight-ina depreatian for all fhant ate.
kescarch and development coss of $30,300 ne e incured car y in 2019. They nere capitaliaed and were to be amortued over a year period. Amortization of s10,100 was recurded for 20:9 and $10,100 for 2020.
On Ianunry 3, 3010, wildhama ianced a huidn; for 5 yeaT at a martinty rartal at sa,nen. On that data, the sompany paid the fallong amnunte, which uera penead wihen pard.
Senunty depsee
First month's rent
Lact manth'e rent
60.tan
109,דד>
The company received $37,200 from e customer at Uie bcyring of 2019 far services Uhat it is 1o perferm everly vrer a 3 year period beginning in 2019. Nane of Uhe amount reccived waa repened as urcamed reren.e al Uie erd afr 2018.
Indicate the effest of any errors an the net income figure reparted on tre income stemert for Uhe year ending December 31, 2019, and the retained camings figure reparted on the bulance sheet at December 3, 2020. Asume al anourta are material, and ignore income tax elfects. Using the
S.
G.
foiloung format, anter the epreenst dalr amaunte in aspmenst relumne. CareisA ANh item ndapandent of h ather iteme. It e nat necerary ta tatai tha celumne on gnt.
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