You are examining the financial statements of DON JOHN CORPORATION which ends on December 31. DON JOHN CORP. uses the physical inventory system of accounting for inventory. During your examination, you discovered the errors below. 1. Goods received in January 2020 were recorded as purchase on account in December 2019. The goods were included in the 2019 ending inventory. 2. The inventory at December 31, 2019 is understated as a result of errors in physical count. 3. Goods received in December 2019 were recorded as purchases when paid in 2020. The goods were excluded from the 2019 ending inventory. 4. The inventory at December 31, 2019 is overstated as a result of the inclusion of goods acquired on consignment. 5. Goods received in January 2020 were recorded as purchase on account in December 2019. The goods were excluded from the 2019 ending inventory. 6. Goods received in December 2019 were recorded as purchases when paid in 2020. The goods were included in the 2019 ending inventory. Enter the effect of the errors in the solution guide below. Use the following symbols: O-Overstated, U-Understated X-No effect

You are examining the financial statements of DON JOHN CORPORATION which ends on December 31. DON JOHN CORP. uses the physical inventory system of accounting for inventory. During your examination, you discovered the errors below. 1. Goods received in January 2020 were recorded as purchase on account in December 2019. The goods were included in the 2019 ending inventory. 2. The inventory at December 31, 2019 is understated as a result of errors in physical count. 3. Goods received in December 2019 were recorded as purchases when paid in 2020. The goods were excluded from the 2019 ending inventory. 4. The inventory at December 31, 2019 is overstated as a result of the inclusion of goods acquired on consignment. 5. Goods received in January 2020 were recorded as purchase on account in December 2019. The goods were excluded from the 2019 ending inventory. 6. Goods received in December 2019 were recorded as purchases when paid in 2020. The goods were included in the 2019 ending inventory. Enter the effect of the errors in the solution guide below. Use the following symbols: O-Overstated, U-Understated X-No effect

Name: Effect of the error # 1 for the year 2020 Answer the ff: O-OverstatedU
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Effect of the error # 1 for the year 2020 Answer the ff: O-OverstatedU-UnderstatedX-No effectPurchases Cost of Sales Net income Inventory Accounts Payable RE before closing RE after closing You are examining the financial statements of DO

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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Bill Blumberg owns an auto parts business called Bill's Auto Parts. The following transactions took place during July of the current year. July 5 Purchased merchandise on account from Wheeler Warehouse, $4,300. 8 Pald frelght charge on merchandise purchased, $230. 12 Sold merchandise on account to Blg TIme Spoller, $3,500. The merchandise cost $2,500. 15 Recelved a credit memo from Wheeler Warehouse for merchandise, $670. 22 Issued a credit memo to Blg Time Spoller for merchandise returned, $820. The cost of the merchandise Is $550. Required: 1. Journalize the above transactions In a general journal using the perlodic Inventory method. If an amount box does not require an entry, leave it blank. Page: 1 POST. DATE DESCRIPTION DEBIT CREDIT REF. 1 July 5 1. 2 3. July 8 4 4. July 12 July 15 6. July 22 10 10 2. Journalize the above transactions In a general journal using the perpetual Inventory method. If an amount box does not requtre an entry, leave it blank. Page: 1 POST. DEBIT CREDIT…