sfects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulti Indicate the effect of each error, considered individually, on the incon Enter all amounts as positive numbers. Enter "0" in those spaces wh Error (a) The adjusting entry for unearned revenue eamed during
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- What does deferred revenue generally represent on the balance sheet? Amounts that have been invoiced to a customer but not yet recognized as revenue Unapplied customer payments Projected future revenues that have not been invoiced Refunds due to customersThe unadjusted trial balance of Building Blocks Company does not balance. View the unadjusted trial balance. The following errors are detected: View the errors. Prepare the corrected unadjusted trial balance at August 31, 2025. Journal entries are not required. Account Title Total Building Blocks Company Unadjusted Trial Balance August 31, 2025 Debit Balance Credit Errors a. b. C. d. e. f. g. h. i. Cash is understated by $1,600. A $4,700 debit to Accounts Receivable was posted as a credit. A $900 purchase of supplies on account was neither journalized nor posted. Equipment was incorrectly transferred from the ledger as $87,600. It should have been transferred as $79,000. Salaries Expense is overstated by $500. A $800 cash payment for advertising expense was neither journalized nor posted. A $140 cash dividend was incorrectly journalized as $1,400. Service Revenue was understated by $3,800. A 12-month insurance policy was posted as a $1,300 credit to Prepaid Insurance. Cash was posted…What is the appropriate name of the error which was made under the following circumstances: A payment of N$442 to a supplier by the business was recorded in the relevant ledger accounts for N$424? O a. Error of original entry O b. Error of complete reversal O c. Error of omission O d. Commission error
- Please help with the following question COMPLETION STATEMENTS 1.Notes and accounts receivable that result from sales transactions are often called______________ receivables. 2.Two accounting problems associated with accounts receivable are (1) ______________ and (2) ______________ accounts receivable. 3.The net amount expected to be collected in cash from receivables is the _____________. 4.When credit sales are made, _________________ Expense is considered a normal and necessary risk of doing business on a credit basis. 5.The two methods used in accounting for uncollectible accounts are the ____________ method and the ______________ method. 6.Allowance for Doubtful Accounts is a_____________ account which is ______________ from Accounts Receivable on the balance sheet. 7.When the allowance method is used to account for uncollectible accounts, ____________ is debited when an account is determined to be uncollectible. 8.The _________________ basis of…Mc Graw Hill Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 37,000 Accounts receivable Percent uncollectible Req A Req B and C Complete this question by entering your answers in the tabs below. Accounts Receivable X a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. Total 0 $575,000 $ 397,000 c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. X Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X X X Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using…Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. Note: Select "None" if there is no effect. (1) Difference between Description of Posting Error Debit and Credit Columns Larger Total (2) Column with the (3) Identify Account(s) Incorrectly Stated (4) Amount of account over- or understatement a. $1,720 debit to Rent Expense is posted as a $1,270 debit. $ 450 Credit Rent Expense Rent Expense is understated by $450 b. $3,440 credit to Cash is posted twice as two credits to Cash. c. $1,570 debit to Prepaid Insurance is posted as a debit to Insurance Expense.…
- Ajournal entry for a $220 payment to purchase office supplies was erroneously recorded as a debit to Office Supplies for $500 and a credit to Cash for $220. Which of the following statements correctly states the effect of the error on the trial balance? O A. The sum of the credits will exceed the sum of the debits by $280. O B. The sum of the debits will exceed the sum of the credits by $220. O C. The sum of the debits will exceed the sum of the credits by $500, O D. The sum of the debits will exceed the sum of the credits by $280.For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would caus the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much. If the debit and credit totals would be equal, ente zero ("0") in the amount box. a. The payment of an insurance premium of $890 for a three-year policy was debited to Prepaid Insurance for $980 and credited to Cash for $890. Which of the following is true? The debit column on the trial balance would be higher than the credit total. If the totals on the trial balance are not equal, by how much is one column higher than the other? b. A payment of $2,575 on account was debited to Accounts Payable for $1,803 and credited to Cash for $1,803. Which of the following is true? The debit and credit totals of the trial balance would be equal. If the totals on the trial balance are not equal, by how much is one column higher than…Under the direct write-off method, uncollectible accounts expense is recognized Multiple Choice O ① in an adjusting entry at the end of the accounting period. when an account is determined to be uncollectible. when the allowance account has a zero balance. in a closing entry at the end of the accounting period.
- Which of the following entries properly closes a temporary account? Select one: a. Income Summary XX Cash b. C. Debit Credit Expense Accumulated Depreciation XX Income Summary Income Summary d. e. XX Retained Earnings XX Dividends Debit Credit Debit Credit XX Debit Credit Income Summary XX Revenue XX XX Debit Credit XX XXFor each of the following situations, indicate whether itrepresents an accounting error and explain why it is or isnot an error. Also state whether a trial balance would indicate that an error exists for each situation.d. The debit side of a journal entry was recorded in theaccounts, but the credit side was not.To ensure that the Allowance for Doubtful Accounts account does not became materially misstated over time, companies revise overestimates of prior periods by Multiple Choice lowering estimates in the current period. recording a retroactive correcting entry increasing estimates in the current period. notifying the users of its financial statements of the error. O