The following are independent events. For each change or error select how it would be accounted for. a. Changed remaining service life from 8 years to 10 years b. Change from an unacceptable accounting method to an acceptable C. Received money won in a law suit d. Inventory write down due to obsolescence e. Change in rate used to calculate warranty costs f. Change from FIFO to average costs inventory method g. Discovered errors in unrecorded expenses from a prior period h. Purchased another company which now requires the financial statements to be consolidated

The following are independent events. For each change or error select how it would be accounted for. a. Changed remaining service life from 8 years to 10 years b. Change from an unacceptable accounting method to an acceptable C. Received money won in a law suit d. Inventory write down due to obsolescence e. Change in rate used to calculate warranty costs f. Change from FIFO to average costs inventory method g. Discovered errors in unrecorded expenses from a prior period h. Purchased another company which now requires the financial statements to be consolidated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows: A 3-year insurance policy purchased on Oct 31, 2020, in the amount of $18,000.00 was debited to Prepaid Insurance. No adjustment was made on December 31, 2020, or on December 31, 2021. Prepare appropriate journal entries to correct the error, and any adjusting entries required (assume the 2021 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required.") a)identify the J/E made error b) Identify the J/E that should have been made c) Provide the correcting J/E to fix the error d)year end adjusting entry
How should accounting errors discovered in the same accounting period they relate be correct. For example, during year 2021, ABC corporation discovered an error in March of 2021 where an expense was debited instead of a fixed asset. How should the error be corrected O Wait until following year to correct the error O Correct the error using prior year in this case 2020. O Reverse the erroneous entry and post the correct entry as soon as the error is discovered, in this this case in the year 2021 O Do nothing, it will self correct
The Trial Balance of a concern has agreed but the following mistakes were discovered after the preparation of final Accounts. (a) No adjustment entry was passed for an amount of $2,000 relating to outstanding rent. (b) Purchase book was overcast by $1,000.(c) $4,000 depreciation of Machinery has been omitted to be recorded in the book. (d) $600 paid for purchase of stationary has been debited to Purchase A/c.(e) Sales books was overcast by $1,000.(f) $5,000 received in respect of Book Debt had been credited to Sales A/c. Show the effect of the above errors in Profit and Loss Account & Balance Sheet.
if mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,770). What is the effect of each error, considered individually, on the income statement for the current year ended July 31.
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
b. Changes in measurement methods implied changes in accounting estimates. Choose TWO (2) of the following situations that specify changes in accounting estimates. i. ii. iii. iv. Revision of remaining useful life of equipment from 10 years to 8 years. An amount of RM15,000 receipt from account receivables was fraudulently credited to employee's bank account. Change of depreciation method of machinery from straight line to reducing balance. Change from measuring investment property using cost model to fair value model.
During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $475 was earned during the period, the second was for accrued interest payable of which $315 is owed for the period. As a result of these omissions expenses are overstated by $475. net income is overstated by $315. liabilities are understated by $160. These omissions would not affect the financial statements; the financial statements will be correct. revenue is understated by $475.
Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($27,780) and (b) accrued wages ($7,780). If the net income for the current year had been $537,000, what would have been the correct net income if the proper adjusting entries had been made?$fill in the blank
Based on the given data, prepare the adjusting entries assuming errors were discovered in the following years: a. 2020 b. 2021 c. 2022
If a company produced a net income of P28,000.00 but failed to adjust for P1,500 in depreciation of equipment and P1,400 in accrued wages. Explain how this errors affected the net income. What will be the corrected net income.
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.
I need assistance Effect of Omitting Adjustments For the year ending April 30, Beckinworth Medical Services Co. mistakenly omitted adjusting entries for (1) $6,700 of supplies that were used, (2) unearned revenue of $11,300 that was earned, and (3) insurance of $2,500 that expired. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended April 30. (a) Revenues $fill in the blank 2 (b) Expenses $fill in the blank 4 (c) Net income $fill in the blank 6