Journalizing: Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts. To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects. Given information: Inventory stock entered as of $690,000 instead of $960,000. The inventory is understated by $270,000. The error incurred in the year 2020 and is discovered in 2022.

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Answer 1

Question

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

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Answer 2

Question

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Answer 6

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Answer 7

Chapter 21, Problem 21.12BE

To determine

Journalizing:

Journalizing is the process which includes recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the accounts are posted to the relevant ledger accounts.

To record: The correct journal entry for the error in the inventory account, ignoring any income tax effects.

Given information:

Inventory stock entered as of $690,000 instead of $960,000.

The inventory is understated by $270,000.

The error incurred in the year 2020 and is discovered in 2022.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3Q Ch. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - Prob. 21.8Q Ch. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...

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Chapter 21 Solutions