The December 2022 and January 2023 sales journals have the following information included: Sales Journal - Dec 2022 Day of the Month 30 30 31 31 31 Sales Journal - Jan 2023 1 1 1 2 2 Sales Invoice no 5326 5329 5327 5328 5330 a. 21,318 b. 253,452 c. (253,452) d. (21,318) 5332 5331 5333 5335 5334 Amount of Sale 72,611 191,430 41,983 62,022 4,774 264,131 10,639 85,206 125,050 64,658 What is the net overstatement/(understatement) of KnK for the year ended December 31, 2022? Choose your answer from the choices below and show your computations What adjusting entry is necessary to correct KnK's financial statements for the year ended Dec 31, 2022 ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. What is the net overstatement/(understatement) of KnK for the year ended December
31, 2022?

2. What adjusting entry is necessary to correct KnK’s financial statements for the year
ended Dec 31, 2022 ?

The December 2022 and January 2023 sales journals have the following information
included:
Sales Journal - Dec 2022
Day of the Month
30
30
31
31
31
Sales Journal - Jan 2023
1
1
1
2
2
Sales Invoice no
5326
5329
5327
5328
5330
a. 21,318
b. 253,452
c. (253,452)
d. (21,318)
5332
5331
5333
5335
5334
Amount of Sale
72,611
191,430
41,983
62,022
4,774
264,131
10,639
85,206
125,050
64,658
What is the net overstatement/(understatement) of KnK for the year ended December
31, 2022? Choose your answer from the choices below and show your computations
What adjusting entry is necessary to correct KnK's financial statements for the year
ended Dec 31, 2022 ?
Transcribed Image Text:The December 2022 and January 2023 sales journals have the following information included: Sales Journal - Dec 2022 Day of the Month 30 30 31 31 31 Sales Journal - Jan 2023 1 1 1 2 2 Sales Invoice no 5326 5329 5327 5328 5330 a. 21,318 b. 253,452 c. (253,452) d. (21,318) 5332 5331 5333 5335 5334 Amount of Sale 72,611 191,430 41,983 62,022 4,774 264,131 10,639 85,206 125,050 64,658 What is the net overstatement/(understatement) of KnK for the year ended December 31, 2022? Choose your answer from the choices below and show your computations What adjusting entry is necessary to correct KnK's financial statements for the year ended Dec 31, 2022 ?
6. KnK Auto parts sells new parts to auto dealers. As part of the policy, the company
requires that a prenumbered shipping document be issued for each sale. At the time of pickup
or shipment, the shipping clerk writes the date on the shipping document. The last shipment
made in the year ended December 31, 2022, was recorded on document 3167. Shipments are
billed in the order that the billing clerk receives the shipping documents. For late December
2022 and early January 2023, shipping documents are billed on sales invoices as follows:
Shipping Document No
3163
3164
3165
3166
3167
3168
3169
3170
3171
3172
Sales Invoice No
5332
5326
5327
5330
5331
5328
5329
5333
5335
5334
Transcribed Image Text:6. KnK Auto parts sells new parts to auto dealers. As part of the policy, the company requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk writes the date on the shipping document. The last shipment made in the year ended December 31, 2022, was recorded on document 3167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late December 2022 and early January 2023, shipping documents are billed on sales invoices as follows: Shipping Document No 3163 3164 3165 3166 3167 3168 3169 3170 3171 3172 Sales Invoice No 5332 5326 5327 5330 5331 5328 5329 5333 5335 5334
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